Canada finance minister defends Bank of Canada amid opposition attacks

Canada’s Finance Minister Chrystia Freeland seems on throughout a information convention earlier than delivering the 2022-23 finances, in Ottawa, Ontario, Canada, April 7, 2022. REUTERS/Blair Gable/File Photograph

OTTAWA, Could 20 (Reuters) – Canadian Finance Minister Chrystia Freeland on Friday defended the central financial institution as inflation spikes to a three-decade excessive and the frontrunner to take over the opposition Conservative Occasion pledges to fireside the Financial institution of Canada governor if elected.

“It’s clear to us all that we live by way of a interval of worldwide volatility. We’ve COVID. We’ve the Russian invasion of Ukraine. We’ve China’s zero-COVID coverage,” Freeland informed reporters by teleconference from Munich, Germany after a G7 assembly.

“On this surroundings, accountable political management means reinforcing for Canadians, and for the world, our authorities’s very clear dedication to the independence of the Financial institution of Canada and our confidence within the Financial institution of Canada.”

Pierre Poilievre, who leads in all polls forward of a September vote to elect a brand new Conservative chief, has mentioned he would turf Financial institution of Canada Governor Tiff Macklem “to get inflation beneath management” if he turns into prime minister.

Inflation inched as much as 6.8% in April, with meals worth development hitting a 4 decade excessive, upping the strain on the central financial institution to hike rates of interest shortly to keep away from an inflationary spiral. learn extra

Individually, Canada mentioned on Friday it was imposing extra sanctions on Russian oligarchs and banning commerce in sure luxurious items with Russia in response to Moscow’s invasion of Ukraine. learn extra

Freeland additionally informed reporters the G7 had broadly mentioned “additional strengthening” sanctions in opposition to Russia, together with the query of an oil and fuel embargo.

“We completely acknowledge that the financial problem of an oil and fuel embargo is far better for our European companions,” she mentioned, including the group had mentioned methods Canada may assist Europe on vitality safety.

Reporting by Julie Gordon and Steve Scherer in Ottawa; Modifying by Chizu Nomiyama

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