Canada’s central bank appears more concerned with job creation than about inflation – CBC

Bank of Canada must keep an eye on Ottawa — and one on Washington — in inflation fight

Dec 10, 2021

“There are three issues,” the man who would become Prime Minister Brian Mulroney told a roaring crowd in Nova Scotia 38 years ago. “The first is jobs, the second is jobs, and the third is jobs.”

After a decade fighting inflation and the high interest rates that required, the focus on “jobs, jobs, jobs” took Mulroney and his Progressive Conservative Party to a sweeping victory over the Liberals in the next year’s election.

Nearly four decades later, the Bank of Canada — and very likely Finance Minister Chrystia Freeland in her fiscal update next week — appear to agree that jobs and the economy are more important to Canadians than their fear of inflation.

Canadians like jobs and incomes
“It’s largely a good news story for many Canadians — many Canadians are getting jobs,” said Bank of Canada deputy governor Toni Gravelle, presenting the central bank’s economic progress report on Thursday to the Surrey Board of Trade in B.C.

“And them having jobs and incomes means there’s more demand for all the goods and all the businesses out there.”

Read more: https://www.cbc.ca/news/business/inflation-economy-column-don-pittis-1.6279215

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