Deputy Prime Minister and Minister of Finance Christia Freeland spoke to reporters before addressing the issue at the House of Commons on Parliament Hill in Ottawa on June 23rd. Justin Tang / The Canadian Press
Finance Minister Christia Freeland said on Sunday that Canada still has a way to a “soft landing” where it can stabilize economically after the impact of the COVID-19 pandemic, without facing a severe recession that many fear.
In an interview with CBC’s Rosemary Barton live, Ms Freeland said she needed to find a balance between helping people in Canada suffering from the effects of inflation and pursuing a policy of fiscal restraint, or the risk of exacerbating the cost of living.
She said she was open to further action on accessibility issues, but believed that the measures already in place would help reduce the impact on Canadians.
“I have to find a balance. “One is to support Canadians with the challenges of affordability, and the other is a fiscal constraint because I don’t want to make the Bank of Canada more difficult than it already is,” she said.
Asked about Canada’s ability to overcome global economic uncertainty, Ms Freeland said “the challenge is not over, but I really believe we will overcome it together”.
Annual inflation in Canada accelerated to 7.7% in May, near a 40-year high, well above the Bank of Canada’s forecast in April that it would average 5.8% this quarter.
Ms Freeland had previously expressed confidence in the Bank of Canada’s ability to contain rising inflation and keep price gains at a standstill, but said there was no guarantee that the economy would avoid a recession.
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