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FP says TD, rivals hear "misleading rhetoric" unhelpful

2023-11-24 09:30 ET - In the News

See In the News (C-TD) Toronto-Dominion Bank

The Financial Post reports in its Friday, Nov. 24, edition that though inflation fell to 3.1 per cent in October, it could remain sticky, leaving the Bank of Canada with a dilemma over whether to further increase rates. The Post's guest columnist David Jones writes that war, higher energy prices and fiscal expansion could also renew upward price pressures. Politicians could continue their letter writing and grandstanding, increasing public opposition to strict inflation targeting. More misleading rhetoric -- that the BOC "caused inflation" -- could stoke populist rumblings. Further comments from Minister of Finance Chrystia Freeland could be unhelpful given her formal powers to provide a directive to the BOC. Ultimately, the recent ministerial representations are manageable. Monetary politics even arguably has a place, with ministers ensuring that central banks "feel" the societal impacts of monetary policy. However, the recent exchanges serve a warning. Evidence and history suggest that Canadians will be worse off if the BOC is pressured to moderate rates. Interest rates are blunt enough without having to contend with political interference.

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