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Bank of Canada Faces Credibility Test in Political Firestorm Over Inflation

  • Macklem may have to ‘overdo it’ on rate hikes to repair trust
  • Second of three consecutive half-point moves expected June 1
Tiff Macklem.
Tiff Macklem.Photographer: Justin Tang/Bloomberg

If worrying about an overheating economy wasn’t enough trouble, Bank of Canada Governor Tiff Macklem enters a crucial six-week period in his battle against inflation with an unexpected new problem: questions about his own credibility.

The 60-year-old central banker is being targeted by prominent politicians from the opposition Conservative Party who are casting doubt on his commitment to the fight. And while most economists and pundits have dismissed the criticism as frivolous, the attacks come at a tense time.