Bank of Canada Governor Tiff Macklem warned premiers who asked the central bank not to raise interest rates last month that their requests could undermine the institution's independence.
The premiers of Ontario, B-C and Newfoundland and Labrador wrote letters to Macklem ahead of the Bank of Canada's September 6th rate decision, asking that the central bank not raise interest rates again because of concerns about the effects on residents.
Macklem responded to these letters on Sept.13 acknowledging that higher interest rates are making life challenging for Canadians, but noted that inflation also tends to hurt the most vulnerable people in society.
However, he warned that instructions or requests from elected officials could give the impression that the Bank of Canada's independence is at risk.
In a letter to Macklem published on X, the platform previously known as Twitter, Ontario Premier Doug Ford again urged the central bank not to raise interest rates.
The Bank of Canada is set to make its next rate announcement on Wednesday, when it is widely expected to continue holding its key rate steady as the economy weakens and inflation eases