Interest rates: Monetary policy is always political as central banks opt to back the financial sector

Interest rates: Monetary policy is always political as central banks opt to back the financial sector

As the Bank of Canada prepared to announce its decision on interest rates in early September, Tiff Macklem, the bank’s governor, received imploring letters from premiers spanning both the country and the political spectrum. New Democrat David Eby of British Columbia wrote to the Bank of Canada, followed by Ontario’s Doug Ford, a Conservative, and by Liberal Andrew Furey of Newfoundland and Labrador. In their letters, the premiers urged the ban…