BOC Governor Tiff Macklem plans to review tools used to pull through the Covid pandemic and suggested QE contributed to rapid inflation through the rebound during testimony at one of the toughest parliamentary hearings in recent memory.

New Democratic Party Leader Jagmeet Singh, who's propping up a minority Liberal government, took the rare step of showing up to ask Macklem questions including why he appeared eager to focus on wage demands rather than corporate profits as a source of inflation. Former Conservative Party Leader Andrew Scheer pushed Macklem on whether government bond buying fed the fastest price gains in four decades and asked if emerging losses on QE require a "bailout" of the central bank.

"It’s not the Bank of Canada's job to tell businesses what to pay workers," Macklem told Singh, adding has given a consistent message about resolve to make sure rapid inflation is contained. He also said when the 2% inflation target is met there's a need for a "thorough review" of tools including QE, and with hindsight such stimulus should have been removed earlier. (See: BOC Needs Faster Hikes, Risks Slump-Ex Adviser)