Canadian Senate urges Bank of Canada to be more transparent By Reuters

© Reuters. FILE PHOTO: Bank of Canada Governor Tiff Macklem exits the Bank of Canada building in Ottawa, Ontario, Canada on June 22, 2020. REUTERS/Blair Gable/File Photo

(Fixes the removal of the repeated quote in paragraph 6)

(Reuters) – A Senate committee on Wednesday called for stronger parliamentary oversight of the Bank of Canada and more transparency from the central bank as it struggles to restore confidence lost in last year’s fight to curb inflation.

The Bank of Canada has come under rare attack from critics, including opposition Conservative leader Pierre Poilivre, for miscalculating inflation, leading to renewed calls for it to release minutes and be more open about its decision-making process.

Last week, the Bank of Canada finally released the minutes of its policy meeting and concluded that the central bank raised rates last month rather than leaving them unchanged due to tight labor markets and stronger-than-expected growth.

“The Bank of Canada should be more transparent and periodically release its assessment of the impact of its interventions on inflation and on the dynamics of key economic indicators,” said the Senate Committee on Banking, Trade and the Economy.

In a report released on Wednesday, the Senate committee said monetary tightening was warranted, while noting that rising interest rates have begun to slow economic growth and could exacerbate housing problems.

The central bank declined to comment on the report of the Senate committee.

On January 25, the Bank of Canada raised its key interest rate to 4.5%, the highest level in 15 years, and became the first major central bank to say it would likely delay further hikes for now.

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