Hon. Leo Housakos: Honourable senators, my question is for the Leader of the Government in the Senate. Senator Gold, the Governor of the Bank of Canada, Tiff Macklem, testified before the Senate Banking Committee. He has recognized that he and his lieutenants in the Bank of Canada have gotten it all wrong when it comes to inflation. He has also recognized that they have completely misjudged the strength of inflation. Mr. Macklem said:

If you go back to January, we were saying that inflation would peak at about 5%, and by now you start to see some signs it’s coming down. It’s now 6.7% and it’s going to take longer to come down. . . .

Government leader, will you acknowledge that Prime Minister Trudeau and his government should start recognizing the lead taken by the Governor of the Bank of Canada and recognize that they have also gotten it all wrong when it comes to inflation? Furthermore, will you also agree with me that it’s high time that Mr. Trudeau starts thinking about monetary policy?

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. I do not agree that the government has “gotten it all wrong.” I think we will all acknowledge that, as the governor has, one makes one’s predictions and assessments based upon the best evidence at the time. However, circumstances change and assessments have to be revised, which is the case here.

The Government of Canada is concerned with the rising cost of living for Canadians. It’s concerned about inflation and the impact that it can have on people’s well-being and expectations for the future and is considering using all of the tools that it has at its disposal as a government to do its part to address this important issue.