A Senate committee has called for greater transparency from the Bank of Canada as it continues to try and lower inflation by raising interest rates.
The Bank of Canada has come under growing criticism from politicians in Ottawa for misjudging inflation coming out of the pandemic, which has led to calls for the central bank to be more open about its decision-making process.
Last week, the Bank of Canada released minutes from its policy-setting meeting for the first time in its history, following a practice long held by other central banks such as the U.S. Federal Reserve.
In a newly released report, the Senate banking committee said that the tightening of monetary policy over the last year was justified, while noting that rising interest rates had begun to slow economic growth across Canada.
However, the report stated that: “The Bank of Canada should be more transparent and periodically make public its assessment of the effect of its interventions on inflation and on the evolution of key economic indicators."
The Bank of Canada declined to comment on the Senate committee report.
On January 25, the Bank of Canada raised its trendsetting overnight interest rate to 4.50%, its highest level in 15 years, and became the first major central bank in the world to say that it would pause further rate increases as it assesses their economic impact.
