No political or private entity has undue influence on the BoC's policies, officials say
The Bank of Canada has offered assurances to the public that it remains an independent entity, and that neither the government nor the private sector has undue influence on monetary policy.
“Public trust is fundamental to our ability to deliver on our mandate,” according to senior deputy governor Carolyn Rogers. “We are acutely aware that, with some of the extraordinary actions we have taken during the pandemic and with inflation well above our target, some people are questioning that trust.”
Rogers acknowledged the need for the central bank to continue fielding hard questions from the public.
“Inflation is too high. It’s well above our target; it’s hurting Canadians,” Rogers said. “They need to be asking us questions, and we need to keep answering them.”
Read more: Analysts: Canadians’ savings at risk from hikes, inflation
However, Rogers expressed bafflement at statements alleging that the BoC is beholden to certain interests.
“Public trust is fundamental to our ability to do our job, and anything that damages that trust ultimately damages our ability to deliver for Canadians. It ultimately hurts Canadians,” Rogers said. “I think that’s a pretty well-accepted fact in Canada, and by most politicians, and so it’s unusual for the bank to get dragged into the political rhetoric. It’s not unheard of, but it’s fairly unusual, particularly in developed economies.”
Conservatives have decried the bank’s purchase of more than $300 billion in government bonds as part of its quantitative easing program, saying that the Liberal administration is interfering in the central bank’s independence.
