National

Macklem says he doesn't think federal budget will have much of an impact on inflation

Darpan News Desk The Canadian Press, 01 May, 2024 05:26 PM

Bank of Canada governor Tiff Macklem said he doesn't think the federal budget tabled last month will have much of an effect on inflation.

Macklem was testifying at a Senate committee alongside senior deputy governor Carolyn Rogers on Wednesday following the central bank's latest interest rate announcement.

The governor said the spending plan hasn't changed the federal government's fiscal track by much, since it's offset by higher revenues.

"Since the government's net fiscal plan hasn't changed a lot, I don't think it'll have a big effect on our projections for the economy or inflation," Macklem said in French.

Finance Minister Chrystia Freeland's budget pays for new spending with higher taxes and stronger-than-expected government revenues, which kept the federal deficit in check.

Because of the higher revenues, the budget met all of the government's promised fiscal guardrails from the fall, which Macklem has applauded.

The Bank of Canada is widely expected to begin lowering its policy interest rate in June or July, as the economy loses steam and inflation eases.

Macklem has indicated that the central bank is seeing the right trends to begin lowering interest rates, but it wants to see those trends sustained before pulling the trigger.

The Bank of Canada has been holding its key interest rate at five per cent since last summer.

Prev Next

MORE National ARTICLES

Hamas's attack on Israel: Two victims with Canadian ties laid to rest

Two victims with ties to Canada who were killed in Hamas's attacks on Israel were remembered fondly by relatives on Wednesday, who called for the world to recognize the brutality of what happened. Tiferet Lapidot, 22, was formally identified by authorities on Monday, more than a week after she died at a music festival near the Gaza Strip border, where Hamas's attack began on Oct. 7. Her family had thought she was among those being held hostage.

Hamas's attack on Israel: Two victims with Canadian ties laid to rest

Burnaby homes gutted by fire

Four unoccupied homes have been badly damaged after an early morning fire in Burnaby. Fire officials say that the homes were slated for demolition. Summers says they needed 42 firefighters and 11 trucks to knock down the blaze.

Burnaby homes gutted by fire

B.C. man, Mukhtiar Singh Panghali, who killed his pregnant wife in 2006 is granted full parole

A British Columbia man who killed his pregnant wife and burned her body in 2006 has been granted full parole. Mukhtiar Singh Panghali, who's now 51 years old, was given a life sentence in 2011 for second-degree murder in the death of Manjit Panghali.

B.C. man, Mukhtiar Singh Panghali, who killed his pregnant wife in 2006 is granted full parole

RCMP say 12-year-old killed while biking to school in Pitt Meadows

Police in Metro Vancouver say a 12-year-old was hit and killed by a recycling truck while biking to school this week. The RCMP say they're investigating the collision that occurred at an intersection in Pitt Meadows, B.C., around 8:30 a.m. Tuesday. They say paramedics and Pitt Meadows firefighters tried to save the child's life, but the young victim was pronounced dead at the scene.

RCMP say 12-year-old killed while biking to school in Pitt Meadows

First atmospheric river of fall deluges parts of B.C. south coast, southern Interior

Rainfall warnings cover most of Vancouver Island, as well as the Sunshine Coast, Howe Sound, Whistler and Metro Vancouver as Environment Canada pinpoints a firehose-like band pumping moisture from the subtropics directly at the B.C. coast. More than 200 millimetres of rain could fall along sections of western Vancouver Island, while 80 to 110 millimetres are forecast across the Howe Sound, Whistler and Sea-to-Sky regions before the storm is expected to ease late in the day.

First atmospheric river of fall deluges parts of B.C. south coast, southern Interior

Trudeau chides Smith for pension exit debate, promises to defend stability of CPP

Prime Minister Justin Trudeau entered the Alberta pension-exit debate Wednesday, saying the federal government will fight any threat to the stability of the Canada Pension Plan. In an open letter to Alberta Premier Danielle Smith, Trudeau also took her to task for launching the debate in the first place.