As the Bank of Canada (BoC) continues to raise interest rates, the majority of Canadians are losing faith in the central bank’s ability to deal with the inflation crisis.
Following the Bank of Canada’s decision to raise interest rates by 100 basis points, the largest increase in 22 years, the Angus Reid Institute polled Canadians on whether they have confidence in the Bank of Canada to get through the inflation crisis.
The poll revealed that 53% of Canadians were not convinced that the Bank would make the right decisions to fight inflation.
The survey also revealed a decline in consumer confidence. The majority (75%) of respondents believe the next 12 months is a bad time to make major purchases such as a house, car, renovations or a big vacation – this figure was particularly high in Alberta (81%).
“It tells me that Canadians are already in very tight mode,” Angus Reid Institute President Shachi Kurl told the Calgary Herald.
“It starts with the big stuff, but then it continues into discretionary spending, people are really looking at their credit card bills.”
The latest Angus Reid poll also found that Conservative Party of Canada voters were the most skeptical of the central bank, with 67% of respondents having little faith in the Bank of Canada. In comparison, 39% of Liberal voters and 47% of New Democrat voters had no confidence in the bank.
In recent months, BoC Governor Tiff Macklem has come under fire for the Bank’s failed forecasts. In 2020, the Bank of Canada told Canadians that inflation would “remain below 2%”.
Conservative Party leadership candidate Pierre Poilievre has criticized Macklem for playing into Prime Minister Justin Trudeau’s spending habits.
While campaigning to become leader, Poilievre pledged to fire Macklem and appoint a new Governor to the Bank.
“I would replace him with a new governor who would restore our low inflation mandate, protect the purchasing power of our dollar and honor the workers who earned those dollars,” Poilievre said.
Shortly after Poilievre’s remarks, Deputy Governor Paul Beaudry admitted that the Bank of Canada should be “held accountable” for its failure to keep inflation within target.
“The aspect that we should be held accountable is absolutely accurate,” Beaudry said.
“At this time, we fully understand that many Canadians may be frustrated by the situation. It’s difficult for a lot of people. And we failed to keep inflation at our target, so it’s normal (that) people ask us questions.