Discussion · Oral Questions
Philip Lawrence Conservative
“The Bank of Canada is raising interest rates to fight inflation, but the government keeps spending more money and making inflation worse. I want the minister to promise to spend less in the upcoming budget.”
“Mr. Speaker, the Governor of the Bank of Canada was quite clear: He has raised interest rates because of increasing inflationary pressure. All experts agree that expansive fiscal policy accelerates inflation. In effect, the Governor of the Bank of Canada is hitting the brakes hard while the Minister of Finance continues to accelerate faster and faster. Will the minister commit to some fiscal restraint in the upcoming budget so that Canadians are not pushed over the inflationary cliff?”
Official Hansard
Mr. Speaker, the Governor of the Bank of Canada was quite clear: He has raised interest rates because of increasing inflationary pressure. All experts agree that expansive fiscal policy accelerates inflation. In effect, the Governor of the Bank of Canada is hitting the brakes hard while the Minister of Finance continues to accelerate faster and faster. Will the minister commit to some fiscal restraint in the upcoming budget so that Canadians are not pushed over the inflationary cliff?