Bank of Canada says government spending has not fueled inflation; heavy crude discount hits eight-year high

Zhitong Finance APP has learned that Bank of Canada Governor Macklem said on Tuesday that the Carney government's current fiscal spending plans have not yet created obvious pressure on inflation, nor have they prevented the central bank from achieving its 2% inflation target. However, after the Bank of Canada implemented its first interest rate hike in more than three years last week, debate is heating up in the market over whether government fiscal stimulus and the central bank's tightening monetary policy are contradictory. At the same time, the discount on Canadian heavy crude relative to U.S. crude has widened to its highest level since 2018, further highlighting the complex situation facing the country's economy.