"I can tell you with some certainty that we would not be looking at a substantial change in that mandate, but we will obviously review it and discuss with the governor (of the Bank of Canada) and others whether there should be any kind of adjustment," Prime Minister Stephen Harper told reporters at a campaign stop in Toronto, according to Reuters.
According to Harper, the current inflation target – and the plan to get it there – is working and doesn’t need to be tinkered with.
The bank operates under the guidance of the federal government, and its current policy is to keep inflation near 2%.
The current mandate is set for review in 2016. A change in inflation target is likely a campaign issue for brokers, as it could influence mortgage rates – and industry business.
For his part, Liberal hopeful Justin Trudeau has argued the current regime has taken too active an approach to the central bank – hinting that the current mandate will be held.
“One of the things I think we’ve seen that has been deplorable over the past month is a willingness by the federal government to engage in a more active way with the Bank of Canada, and lean on it and use it to bolster political arguments,” Trudeau told reporters Tuesday in Toronto.
NDP leader Tom Mulcair has yet to comment.
Canadians will head to the voting booth October 19 for the 42nd
However, we already have a sense of how brokers will vote.
A recent MortgageBrokerNews.ca poll found that 51% of brokers plan on voting conservative. 30% said they would be voting liberal; 11% NDP; and 6% preferred not to disclose. The remaining votes were cast for green or “other.”
If these politicians have their way, the Bank of Canada’s mandate will not be altered once they take office.