Senator Gignac: Thank you, Senator Gold. Your answer is reassuring, and I agree with you on the independence of the Bank of Canada with respect to political pressure. That said, we find ourselves in the context of a minority government that has the support of the New Democratic Party. Can you assure us that the Bank of Canada will continue to be independent over the next two years and that it will not be subject to constraints related to the context of this coalition?

Hon. Clément Gignac: Honourable senators, my question is for the Government Representative in the Senate.

Senator Gold, as you know, today the Bank of Canada raised its key interest rate for the sixth time to 3.75% in the hope of taming persistent inflationary pressures. At a press conference earlier today, the Governor of the Bank of Canada, Tiff Macklem, said we should expect further interest rate hikes over the coming year to bring the annual inflation rate down to the 2% target.

More and more economists and experts, including former Bank of Canada governor Mark Carney, are telling the Standing Senate Committee on Banking, Commerce and the Economy that Canada is heading straight for a recession in 2023. Some parliamentarians and political party leaders believe that the Bank of Canada is making a mistake with its current policy and that, at the very least, its mandate should be revised to bring it into line with that of the U.S. Federal Reserve.

Senator Gold, does your government still have full confidence in the current Governor of the Bank of Canada, or does it intend to revise the Bank of Canada’s mandate sometime soon?