Fiscal and monetary policy rowing in opposite directions, Macklem says

Bank of Canada Governor Tiff Macklem says fiscal and monetary policy are rowing in opposite directions, making it harder to bring inflation down. Macklem is appearing before MPs on the House of Commons finance committee after the Bank of Canada's recent rate decision and quarterly economic projections. In response to questioning from Conservative MP Jasraj Singh Hallan, the governor says government spending is working at cross purposes with the central bank's efforts to bring inflation down. The governor says that according to federal and provincial budgets, government spending aggregate will grow faster than supply in the economy over the next year, adding upward pressure to inflation. "It would be helpful if monetary and fiscal policy was rowing in the same direction," Macklem said. At the same time, the governor said it's important to compare Canada's fiscal stance to other countries. "You have to compare Canada to other countries. Canada's deficit-to-GDP ratio is the lowest in the