Bank of Canada Says Fiscal and Monetary Policy Aren’t at Odds

Bank of Canada Governor Tiff Macklem said Prime Minister Mark Carney’s fiscal plans are not yet making it harder for the central bank to control inflation, pushing back on the view that Ottawa’s spending and the Bank’s monetary policy are at odds. The remarks address a key question for markets as Carney’s government ramps up fiscal support while the Bank of Canada manages an inflation rate still above its 2% target. Macklem’s comments suggest the central bank does not currently see fiscal expansion as a material obstacle to easing price pressures. Investors will watch upcoming fiscal updates and inflation data for signs of whether that judgment holds.