MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland
Canadian Finance Minister Chrystia Freeland said Tuesday the government is working to stabilize prices in such a way that allows for the central bank to shift monetary policy from restrictive to neutral.
"What we need to do as a federal government is use all the tools in our toolbox to help stabilize prices," she said in response to a question from MNI at a press conference. "That will create the conditions that allow the Bank of Canada to move from the current position of interest rates, which are intentionally contractionary, to a more neutral position." She also reiterated the Bank of Canada's independence is vital to maintain. (See: MNI INTERVIEW: BOC Could Hike Once Or Twice More, Dodge Says)