Fiscal and monetary policy are not at odds, Bank of Canada’s Macklem tells MPs

OTTAWA — Bank of Canada governor Tiff Macklem says he doesn’t think the federal government’s fiscal policy is at odds with the central bank’s efforts to control inflation.

Macklem spoke to members of Parliament on the House of Commons finance committee this morning, two days before the Liberal government plans to table its 2026 federal budget.

Conservative finance critic Michael Chong asked Macklem for his opinion on the government’s affordability efforts, but the central bank governor declined to answer directly.

He said he only comments on the government’s fiscal policy when spending is approaching unsustainable levels, or when the government’s actions are working against the Bank of Canada’s efforts to tame inflation.