this post was submitted on 07 Jul 2023
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Bank of Canada to raise rates 25 basis points on July 12, possibly the last: Reuters poll | Reuters (www.reuters.com)
submitted 2 years ago by [email protected] to c/[email protected]
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[–] [email protected] 1 points 2 years ago (1 children)

Okay, so first of all, they currently have the power to raise and lower interest rates without the people’s approval. This isn’t some undemocratic seizure of power.

Secondly, I don’t think they should have carte blanche to raise and lower every tax. It could be within some range of the federally set tax rate, e.g 2.5 points above or below.

It’s merely an idea, as people often complain about the BoC only having “one lever”.

[–] [email protected] 1 points 2 years ago* (last edited 2 years ago)

The BoC was created by the will of the people to be, just as it continues to be, a bank (to the banks). Of course it is going to raise and lower its interest rates, just like every other bank. That's what banks do. There was no need to seize power because the public explicitly wanted this bank to exist and for it to function as such.

It is told that the public does not want taxes to be raised. Why would those same people then give power to the BoC to raise taxes? The wanted a bank. They do not want higher taxes.