For an institution that continues to claim it’s independent and apolitical, the Bank of Canada sure keeps doing not-so-independent and apolitical things. In the latest news, BoC Governor Tiff Macklem gave insider advice to business leaders not to raise workers’ wages.
At a July event hosted by the Canadian Federation of Independent Business, Macklem said of inflation, “Don’t build that into longer term contracts. Don’t build that into wage contracts. It is going to take some time, but you can be confident that inflation will come down.”
In the bank’s fight against inflation, the BoC seems to have decided workers should pay the heftiest price. Similar to how, during the pandemic, its choice to sustain near-zero interest rates and extend quantitative easing (QE) boosted assets owned by wealthier Canadians at the expense of those who rely on income.
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