Tag Archives: Bank of Canada

Scoring points off the interest rate decision

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The Bank of Canada raised their policy rate 25 basis points yesterday to 2.5 percent, and as you might expect, the political reaction was bordering on unhinged. The Bank governor’s reasoning was pretty clear—global oil prices are pushing headline inflation up, and while core inflation is on target (meaning the measures that strip out the most volatile components), there is concern that businesses that are currently absorbing the increased fuel costs are going to start passing those costs on through the economy. The rate hike is more of a signal than anything—it can’t do anything about the Strait of Hormuz, but it can send a signal to the economy that the Bank isn’t going to take risings costs lying down, and they’re going to do their part to rein them in. That’s the thing about monetary policy—it’s as  much about sending signals to the market and being willing to back them up with its levers than anything.

For the opposition parties, however, reading apparently isn’t their strong suit. The Conservatives insisted that this was all about the government’s “out of control” spending and deficits, and that’s what is fuelling inflation, all of which is absolute hokum. Tiff Macklem was quite clear in the statement that what’s driving the inflation are global factors, meaning oil prices. The NDP, however, insisted that “This is a clear result of the Liberal government’s failure to get inflation under control.” First of all, managing inflation is the Bank’s job, not the government’s. And second of all, core inflation is on target. Inflation is under control. The spike in the headline number is entirely gasoline prices, which we do not control. And then they took a gratuitous shot about Carney’s initial support for the war in Iran. The cherry on top is that the government is refusing to actually dispute any of the absolutely false things the opposition is saying, and are instead patting themselves on the back for the Bank’s growth projections, because that’ll combat disinformation!

The releases from the Conservatives and NDP are both written from fantasylands that didn't read anything the Bank wrote. The Bank said nothing about deficits or government spending. They did say the source of inflation was global oil prices. Both parties ignored those facts.

— Dale Smith (@journodale.bsky.social) 2026-10-28T20:26:21.043Z

I'm forced to conclude that either our opposition finance critics are illiterate, or they simply lie in order to fit their narratives—likely the latter. Meanwhile, the prime minister is a former central banker but didn't bother to cite the Bank's language in QP today.We are so absolutely boned.

— Dale Smith (@journodale.bsky.social) 2026-10-28T20:26:21.044Z

It is frankly distressing to see just how absolutely economically illiterate the “finance critics” of our opposition parties are. I know that you have narratives that you want to push, but you don’t have to lie to the public to try and make your point. You can be concerned about the size of the deficit without lying that it is driving inflation (when core inflation is on target!) and that it forced the interest rate hike. You can express concerns about the war in Iran pushing up prices without saying that the government didn’t get inflation under control (when again, core inflation is on target! FFS!) This should not be rocket science, and yet, here we are. We don’t have to keep making this the dumbest timeline. These kinds of statements are a choice.

— Effin' Birds (@effinbirds.com) 2026-10-28T13:08:06.166Z

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My column explores the notion that the BC election is a sign that it’s time for “normie” conservatives to be in ascendance, and why that is not necessarily the case.

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QP: Complete fictions about inflation and interest rates

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The PM was finally present for the first time in two weeks, and all of the other leaders were present. Pierre Poilievre led off in French, and he blamed “out of control” government spending for rising inflation which is why the Bank of Canada raised interest rates, which is not what the Bank said at all. Mark Carney thanked him for that lesson on monetary policy and pointed to the Bank’s statement that the inflationary factors were coming from outside Canada, and then pointed to projected growth rates. Poilievre insisted that this as an admission that Carney’s policies caused inflation, and that Canadians are the most indebted in the G7, so they would suffer under higher rates. Carney said they needed to reconcile the discrepancies between their statements, and repeated the Growth projections. Poilievre switched to English to repeat his same pronouncement that government spending and deficits were fuelling inflation, and that was the reason rates were rising. Carney repeated that the Bank was clear the causes were global and he cited the various cuts his government has made to spending. Poilievre again proclaimed the falsehood that spending was driving inflation, and Carney repeated the levels of his cuts. Poilievre selectively cited the Bank’s statement and blamed the clean fuel standard, and Carney again pointed out that the Bank’s statements were all on the record, and spoke about the price of diesel. Poilievre again insisted that Carney was out of touch, listed food banks and housing reports, and railed about affordability. Carney responded by listing measures for Canadians that Poilievre voted against. 

Poilievre is blaming government spending on the inflation that raises interest rates. The Bank of Canada was clear that this is because of global forces, especially gas prices. Too bad Carney can’t spell that out. #QP

— Dale Smith (@journodale.bsky.social) 2026-10-28T18:36:00.472Z

Yves-François Blanchet led for the Bloc, and noted that while Carney was hosting the Crown Prince of Abu Dhabi while the UAE funds the conflict in Sudan, and compared this to the premier of Quebec not being allowed to speak at the EU summit. Carney noted that he gave PSPP a chance to greet the dignitaries and to sit at his table. Blanchet listed other countries with human rights abuses Carney was doing business with but wouldn’t deal with PSPP. Carney insisted they were doing business and raising issues. Blanchet started off on the wrong question, stopped, and restarted by demanding PSPP be allowed to speak at the summit. Carney said that the Quebec delegation already had four meetings, and that this was just the beginning of talks. 

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QP: Totally true stories about very real constitutents

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The PM was off to New York, while Pierre Poilievre was also absent. That led Pierre Paul-Hus to lead off in French, and he touted the supposed Conservative Economic Action Plan™, and demanded that the government adopt it. François-Philippe Champagne responded by listing off the second quarter growth numbers from other G7 countries, and the fact that Canada was at the top of the list. Paul-Hus said that this wouldn’t help affordability, and Champagne insisted that they are taking action, and demanded the opposition support their bill to formally lower the gas excise tax. Melissa Lantsman took over in English to read a couple of sob stories before demanding the government adopt their plan. Champagne trotted out the “take no lessons” line before again exhorting them to support the gas tax bill. Lantsman claimed that the Conservatives identified $150 billion in wasteful spending, and Champagne retorted by wondering why the Conservatives voted against affordability measures. John Brassard then got up, and read more sob stories, but in a sanctimonious tone, and this time, Gregor Robertson got up to tout that rental costs have come down and they are helping with the rental housing boom. Brassard tried again, and Robertson praised the enhanced GST credit. 

Yves-François Blanchet rose for the Bloc, and denounced the omnibus bill tabled yesterday as destroying what was built around labour and the environment. Dominic LeBlanc dismissed this as exaggeration while the country is in crisis. Blanchet tried again, and took a swipe at the Liberals for their swing between what they supported under Trudeau versus Carney, to which Steven MacKinnon shrugged this off, and dismissively said that they would have a chance to debate this. Blanchet worried that all climate measures are being scrapped and handed over to American-owned oil companies. LeBlanc listed Quebec projects the government is supporting.

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Pinky-swearing data centre expectations

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Yesterday morning, minister of digital asbestos, Evan Solomon, was in Markham to announce that the government had created a new framework of “key expectations” for building data centres in Canada, and that 23 major digital asbestos companies had signed on. It all sounds good, until you realise that this is a voluntary code of conduct made with bad faith actors, and that the federal government has pretty much no levers to enforce any of these promises that these companies make, because so much of the regulation is either a provincial or municipal responsibility. So what you have instead is Solomon once again putting on a performance for the cheap seats at the community theatre, and is expecting applause and bouquets for said performance. It’s like we’re back in the Trudeau era of “the announcement is the policy.” This is not serious governance, and governance is the cornerstone of digital sovereignty—that thing that Solomon keeps claiming to care about.

Non-binding 'expectations'? Solomon & Carney are not serious about governing data centres in Canada; they're offside w/ the large & growing anti-data centre public sentiment. These companies won't comply w/ voluntary 'rules.' They have lied about energy & water use. This is weak & shameful.

— Natasha Tusikov (@ntusikov.bsky.social) 2026-09-03T18:53:05.383Z

In technical terms, this is referred to as a "pinky swear." And it's just as binding and effective."The responsible development principles do not include any compliance mechanism or penalties for broken pledges."This is not serious governance.

— Blayne Haggart (@bhaggart.bsky.social) 2026-09-03T17:01:43.644Z

@ntusikov.bsky.social and I wrote this oped about social media regulation, but its main point stands here. Regulatory theory tells us that voluntary agreements don't work with bad actors. The companies listed above are some of the least trustworthy of the past several decades.This is just empty PR.

— Blayne Haggart (@bhaggart.bsky.social) 2026-09-03T17:01:43.645Z

Later in the day, prime minister Mark Carney announced via press release the launch of Digital Transformation Canada, which aims to “refine how the government develops, buys and uses technology.” While this could be a good thing, particularly if it means developing home-grown digital solutions that would get us off of American platforms, that was not really mentioned in the release at all. Instead, it was more about the CEO bullshit around digital asbestos, with “eliminating duplication” and “improve outcomes,” which just sounds like more hype that Carney has swallowed. We have real needs when it comes to our digital sovereignty, but if there is any consideration about how to do that, it doesn’t appear to be coming from this plan as outlined.

— Effin' Birds (@effinbirds.com) 2026-09-03T13:08:02.353Z

Programming Note: I am taking an extra-long weekend, so posts will resume later in the week. Enjoy!

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More hints about future Senate appointments

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There were a couple of bits of Senate news yesterday, one of which was that prime minister Mark Carney has made new appointments to the senate appointment committee, filling vacant spots for a number of provinces. One of those appointments is former Senate Liberal leader James Cowan, and as this blog is a big Jim Cowan fan, I say this is a good person to help vet candidates, but it will do nothing to quell the constant chattering about partisan appointments. We also learned from the Canadian Press reporting that Carney himself chose Tom Pittfield and Richard Martel for appointments, while the other two came from the former committee recommendations that had apparently been sitting for months, which makes a tonne of sense.

This was followed up by Carney’s Senate Leader, Senator Pierre Moreau, who said that while they’re not going to revive a Senate Liberal caucus, Carney might appoint more Conservative senators because they’re dangerously low and he believes in the role for the official opposition in the Senate as a “mirror” of the House of Commons (erm, no, that’s not how this work), which is again, incoherent. Don’t get me wrong—I am not opposed to partisan appointments on either side of the aisle, so long as it’s done properly. The House of Lords has managed a very good system where their appointments board can recommend both partisan Lords and non-partisan cross-benchers, and they keep the numbers fairly in balance so that no one swamps the Chamber, and that is something we should be striving toward. Of course, Carney has not articulated any of this, and we’re instead left with the ongoing incoherence of his position, because nobody knows what the hell they’re talking about (most especially some of the Trudeau-appointed independent senators).

— Effin' Birds (@effinbirds.com) 2026-07-15T13:08:04.280Z

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  • My (belated) Loonie Politics Quick Take points to some of the signs of resilience in the Canadian economy over the past year, amidst so much turmoil.
  • My Loonie Politics Quick Take calls out Carney’s trip to kiss the ring of Prince Bonesaw, and why it’s a really bad look for Canada.

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Reversing themselves on age verification

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The government’s online harms bill dropped yesterday, and while there are some good parts to it, there are some very, very bad parts that I am absolutely outraged about. Because this government has developed a real penchant for major omnibus bills, this contains parts of the previous online harms bill, such as the duty to act responsibly for platforms around safe design for sites and apps, which is the good part. It dropped the hate crime provisions that included restoring some of the functions of the Human Rights Tribunal around hate, which were controversial to begin with, but was also about trying to respond to the increasing amounts of hate being seen online. It seeks to create a Digital Safety Commission as the regulator in charge of the online harms scheme, who will oversee enforcement and implementation. It has a partial social media ban for youth under sixteen, but is also incorporating the age verification scheme of that Senate Public Bill, S-209, which has failed time and again, and which the Trudeau government opposed for all of the right reasons, including the fact that age verification cannot work without becoming mass surveillance (and yes, this is the part that I am absolutely livid about). (More from CBC here and here).

https://bsky.app/profile/emmettmacfarlane.com/post/3mnxuplffys2b

Part of what is so infuriating is that they are putting the age-gating into this legislation, but there are no details on how that is going to work, other than mention of “age estimation,” which is poor technology when it can have trouble distinguishing between a fifteen and a sixteen year-old, and doesn’t work well for anyone who is racialised or trans (and certain age estimation technologies have been easily thwarted with fake moustaches). And remember, this is technology that everyone on the internet is going to be subjected to, which is inevitably going to involve mass surveillance, and the loss of internet privacy writ-large. The Liberals have reversed themselves yet again, shamelessly. (For more, here is Michael Geist’s first impressions of the legislation).

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My column highlights remarks that Louise Arbour made about diversity during her installation speech, given we are at a time of increasing ethnic/white nationalism.

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Roundup: Quashing a petition, neutering the carbon price

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The Alberta Court of King’s Bench ruled yesterday that the separatist petition did not engage the duty to consult with First Nations, given that it directly affects their interests, and it is effectively quashed, before the signatures were validated. It’s big news, and this could or should have been the off-ramp from the referendum that Alberta premier Danielle Smith could use to keep the situation from spiralling. But that’s not what’s happening.

This basically kills 301,000-signature petition separatists delivered to Elections AB to force referendum on independence.Premier Smith could still call referendum as gov't act, like separatist groups want her to. But lack of Indigenous consultation would still be problem. bsky.app/profile/mark…

— Jason Markusoff (@markusoff.bsky.social) 2026-05-13T20:09:36.464Z

Smith has instead declared that this decision is “anti-democratic” (which it absolutely is not, and this is populist rot), and that she will appeal it, because she wants this referendum to happen, either under the bullshit justification of a “relief valve” (which never works—it just makes things worse), or to get leverage from the federal government, not that it’s good leverage because it’s just driving away investment from the province because nobody wants to put money into a separatism situation where the uncertainty cranks up to eleven. But this will also mean that the separatists who control Smith are going to demand she just do a government-initiated referendum, which she has absolutely no democratic legitimacy to do, and which also can’t get around the duty to consult. After all, it’s treaty land, and the treaties are with the Crown, not the province of Alberta, which was not even in existence when those treaties were signed. Nevertheless, Smith has proven she is a separatist, in spite of her protestations, and this is

https://bsky.app/profile/emmettmacfarlane.com/post/3mlrcdwaag223

Entirely predictable.This was the endgame: give the appearance of collecting signatures. Whether or not you meet the threshold (legally) matters little if they'll never be counted.Then pressure the premier to call the vote.Will the premier call the big bluff?

— Jared Wesley (@jaredwesley.ca) 2026-05-14T02:49:22.510Z

https://twitter.com/andrew_leach/status/2054710644705022101

https://twitter.com/andrew_leach/status/2054711562947158058

https://twitter.com/andrew_leach/status/2054714767970050544

Meanwhile, word is out that the pipeline agreement will be signed with Alberta on Friday, and it rests on a significantly reduced industrial carbon price, and if Alberta is getting a special deal, well, that’s going to become the floor for the rest of the country because the whole reason the national price is constitutional, per the Supreme Court of Canada, is to ensure uniformity so that provinces can’t undercut one another on a race to the bottom. And to add to that, Carney’s rationale for cutting the consumer carbon levy was that they could make the industrial price more effective, and now he’s gutting that. And what will he get for this capitulation to Alberta? Nothing. It won’t appease the separatists, because they thrive on invented grievances and conspiracy theories. We’re going to blow up our environmental plans, build a pipeline to the coast on diminishing returns once the situation in Iran is cleared up and the world returns to a supply glut position, and the planet will burn. It’s a wonder that Liberals can look themselves in the mirror.

No lies detected.

— Dale Smith (@journodale.bsky.social) 2026-05-13T15:25:58.917Z

— Effin' Birds (@effinbirds.com) 2026-05-13T19:08:01.569Z

Ukraine Dispatch

Russia hit Kyiv with a massive drone and missile barrage early this morning, killing at least one and injuring at least sixteen others. This followed a daytime drone attack that struck close to the borders of NATO countries, killing six in the process. Ukraine has resumed targeting Russian oil and gas facilities.

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Roundup: The separatists continue their takeover

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Things in Alberta continue to go poorly for people who care about things like democracy and accountability, while separatist leaders are encouraging their followers to all take out UCP memberships so that they can nominate separatist candidates for the party in advance of the next election, so that they can further push Danielle Smith to ensure that they get their referendum, and everything they want to go with it. The party is de facto separatist already, as they control the bulk of the UCP grassroots mechanism, and this would just be completing the takeover provided that no centrist normies also take out memberships to stop them. That is, if they consider the UCP actually worth salvaging.

"I never thought leopards would eat MY face," sobs politician, who encouraged leopards to keep eating faces and hold province-wide vote on face-eating

— Mel Woods (@melwoods.me) 2026-05-11T16:28:13.006Z

The fact that when he created the party, Jason Kenney didn’t provide for any adequate failsafe mechanisms to prevent hostile takeovers is not unsurprising, considering how he crowed about how this would be a “grassroots party,” but then he chased out the centrist normies who would have provided a check on the absolute loons that came to dominate the membership. Of course, Kenney thought that he could control these face-eating leopards, while they noticed that this face was right there, so they ate it. And now Smith continues to believe that she too can control these leopards, even though they’ve fully backed her into a corner and she is doing their bidding rather than the other way around, and it’s only a matter of time before her face is fully eaten as well, while the province goes to absolute shit because she was too self-interested to do the right thing at any point in time.

Meanwhile, as the voter list leak scandal rolls along, it sounds like the UCP staffer that attended the Centurion Project webinar was the caucus executive director (which is an odd title), but she didn’t pass along any information to Smith’s office about the fact that they doxxed Jason Kenney and Rachel Notley as part of the demonstration. That’s kind of embarrassing for Smith, given that she chastised Naheed Nenshi for not informing her about what happened, while her own staffer was there, watched what went down, and thought it was a-okay and not worthy of reporting. That’s not good.

— Effin' Birds (@effinbirds.com) 2026-05-11T13:08:04.717Z

Ukraine Dispatch

As attacks resumed on Ukraine, president Zelenskyy noted that Russia has no intention of ending the war. Ukraine has is making drone deals with some twenty countries, including Canada.

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Roundup: A call to ignore Pathways

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In a sit-down interview with The Canadian Press, prime minister Mark Carney says that an oil pipeline out of Alberta is “more likely than not,” and this doesn’t mean the revived Keystone XL (aka “Bridger Pipeline”). But he’s also not saying anything about Pathways, which is a bit suspicious because he tied the approval to Pathways getting underway, and industry has made it very clear they’re not interested in paying for it.

To that end, who showed up in the op-ed pages of the Globe and Mail but Martha Hall Findlay, former Liberal MP and now head of the University of Calgary’s School of Public Policy, who put on a big show to say that she found it hard to write, but lo, she must recommend that the government “pause” Pathways, because it’s useless on a global scale, and “the world changed.” And then there was more hand-wringing and rationalization that Canada is such a small contributor to global emissions that it doesn’t matter.

The world didn’t change. Facts didn’t change. Climate change didn’t stop with the blockade of the Strait of Hormuz, so quite frankly, this is bullshit and special pleading. The notion that we don’t contribute enough to global emissions is such a poor argument because it’s a common action problem. We have some of the highest emissions on a per capita basis, and yes, that matters. Hall Findlay was going on about how this is all about ego, and we just want to look like we’re leaders, but guess what—every action matters. And if you think that it’s too expensive to reduce emissions now, well, it’s going to be even more expensive the longer we push it down the road, when the effects are even more entrenched globally. We’re already spending billions of dollars in insurance payouts every year that are directly related to climate. The vast majority of food price inflation is climate-related, even if people don’t want to admit it. Frankly, these arguments of hers are tired and baseless and not worth listening to, no matter how much she insists she still believes in climate action…eventually.

My favourite moment in any oil price shock cycle is when the Very Serious Energy People explain why this — again! — is not the time to give a shit about the climate crisis

— Chris Turner (@theturner.bsky.social) 2026-05-01T15:21:29.234Z

If Canada can make that argument at 1.4% then presumably so can Saudi Arabia (1.5), Iran (1.9) and Japan (2.0).Then I imagine both Indonesia (2.3) and Brazil (2.5) would say, "hey, us too." And at that point, you've ruled out 204 countries accounting for roughly 46% of all national emissions.

— Aaron Wherry (@aaronwherry.bsky.social) 2026-05-01T15:02:42.580Z

— Effin' Birds (@effinbirds.com) 2026-05-01T19:08:02.330Z

Ukraine Dispatch

Russia launched yet another attack on port infrastructure in Odesa early Friday, and then launched more than 400 drones in a daytime attack that injured ten people in Ternopil in the west. Ukraine is planning an overhaul of its military rotations, particularly after an outcry over images of emaciated soldiers emerged.

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Roundup: Two committees move behind closed doors

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There is a lot of wailing and gnashing of teeth happening by the Conservatives because debate in two committees was moved behind closed doors now that the Liberals are able to exert majority control of them. The cry is that they’re shutting down “public debate,” but I’m dubious. Members of the government won’t say why this was necessary, but I’m not ready to pull the fire alarm just yet.

Why? Because the two committees in question have been in the throes of attempted witch hunt studies that the Conservatives have been trying to orchestrate (with the gleeful assistance of the Bloc, who are happy to embarrass the government any day of the week). In the ethics committee, it’s been the wrangling over trying to insinuate that François-Philippe Champagne was in a conflict of interest because the Alto high speed rail project was included in the budget when he has since put up an ethics screen because his spouse is now an executive on the project. The thing is, the Ethics Commissioner already said that there is no conflict because Alto reports to a different line minister, but Champagne put up the screen out of an abundance of caution. He did agree to appear after a filibuster, but this may be the Liberals trying to get out of it, and not unsurprisingly. The Conservatives have been trying to engineer this meeting so that they can harvest a bunch of clips of them calling Champagne corrupt and him prevaricating or looking obstinate.

The other committee is health, where the Conservatives are trying to manufacture another “boondoggle” around the PrescribeIT project, which as I understand it, was created at the behest of the provinces, who then decided not to take it up once it was developed. Oh, but there was outsourcing! And? They haven’t been able to make any particular allegation other than it cost money, and this is somehow entirely the federal government’s fault for trying to accommodate provinces who, to this day, refuse to come together on common standards for electronic health records, which has been a persistent problem for two decades now. Suffice to say, I’m not convinced that moving procedural wrangling in camera is a sign that democracy is under threat, and there was a whole lot of this very same thing when the Conservatives had a majority on committees (and they turned those committees into branch plants of ministers’ offices). They may try to cast themselves as heroes for inventing scandals, but I remain unconvinced that this is a danger to parliamentary democracy just yet.

— Effin' Birds (@effinbirds.com) 2026-04-29T13:08:02.607Z

Ukraine Dispatch

Russia’s attack on Odesa early Wednesday hit residential buildings and a hospital. Ukraine says its new long-range drones hit a Russian oil pumping station 1500 km away from the border. Here is a look at the interceptor drone programme to stop Russia’s Shahed drones, and how the interception rate is now up to 90 percent.

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