Sabrina Maddeaux: Tiff Macklem's risky game of tempting Canadians with treats to come

Unfortunately, BoC governor Tiff Macklem hasn’t always been so careful with his forward guidance — and the bank’s recent policy announcement suggests he still suffers from too much hubris.The NP Comment newsletter from columnist Colby Cosh and NP Comment editors tackles the important topics with boldness, verve and wit. Get NP Platformed delivered to your inbox weekdays by 4 p.m. ET.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

So Canadians binged, got overstimulated and spurred manias in a variety of markets. The problem is that there’s always a hangover –– typically sooner rather than later –– and it was irresponsible of Macklem to so confidently tell Canadians there wouldn’t be. In the BoC’s January policy announcement, which raised its rate by 25 basis points to 4.5 per cent, Macklem was back with more forward guidance. This time, he wrote that the BoC expects to pause increases while it assesses “whether monetary policy is sufficiently restrictive to bring inflation back to the two per cent target.”Article content

This essentially provides them with a green light to restart borrowing and spending — perhaps even a bright enough one to outshine the bank’s 25 basis point hike. Macklem’s forward guidance is essentially working against his own monetary policy.Article content

you could plop those yummy bits around a mound of vanilla ice cream and risk me aaaaanyday!

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