Canada’s main opposition party is cautioning the central bank against financing Justin Trudeau’s spending plans beyond immediate pandemic emergency measures, thrusting the Bank of Canada into a political firestorm.
Lawmaker Pierre Poilievre, chief Conservative spokesman on finance issues, said the bank “should not be an ATM for Trudeau’s insatiable spending appetites.” He raised concerns about the long-term impacts of monetary expansion and urged Governor Tiff Macklem to steer clear of “ideological” debates.
Poilievre’s comments highlight the political minefield Macklem is navigating as his central bank becomes primary financier of Trudeau’s massive budget deficits. The longer the Bank of Canada buys up the debt, or advocates for continued spending as it has done, the deeper it will be dragged into debates about government priorities.
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