Julie Gordon and Steve Scherer

OTTAWA, (Reuters) – Justin Trudeau, the front-runner for Canada’s Conservative Party leadership and the likely candidate to challenge Justin Trudeau as Liberal Prime Minister, is making a series of rare attacks on Canada’s central bank. This attack comes amid rising inflation. It could be a tactic to gain party leadership which may hurt Trudeau’s chances at a general election.

Pierre Poilievre is a 42-year old suburban Ottawa lawmaker who has been dubbed “Skippy”, for his youth enthusiasm. Since February, Pierre Poilievre has advanced in the Conservative leadership race tapping into anger about vaccine mandates, pandemic restrictions, and other issues.

Poilievre, (pronounced poh-LEE’ev), has chosen to target his central bank attack rather than any of his five rivals in the race for the presidency. This is despite inflation accelerating to an unprecedented three-decade high.

Tiff Macklem, Bank of Canada Governor, threatened to resign if Tiff wins a national election. This drew criticism from inside the party as well.

David Dodge, former Governor of the Bank of Canada, stated that Poilievre’s onslaught might win him Conservative leadership, but not make him prime minister.

“Is Poilievre (Poilievre), damaging the central bank?” Dodge stated to Reuters that he didn’t believe so. Dodge said that Dodge was reducing his potential as prime minister. Absolutely.”

Poilievre was a minister in the government of former Prime Minister Stephen Harper. Poilievre taps into Canada’s populist left by accusing elites and gatekeepers for high living expenses while promising to make Canada the “freest country on planet Earth.”

Although economists give credit to Bank of Canada’s record low interest rates and aggressive bond buying program as helping keep the economy going during the pandemic lockdowns Poilievre states that the central banking has been “Trudeau’s ATM”, and is responsible for the high level of inflation.

The bank is now reducing its bond-buying programs and raising rates to help cool an “overheating”, economy.

Poilievre refused to interview for the story. With a September vote, the party contest is over. Next federal elections are due in 2025.

An Ekos Research poll found that 56% say Poilievre is their favorite Conservative voter, compared with 14% who prefer Jean Charest, Jean Charest’s closest rival.

TRUMP POPULISTS

These attacks strike at an unfortunate time for the bank. Macklem (NYSE:), Senior Deputy Governor Carolyn Rogers, have offered rare concessions, saying that high prices could be undermining trust in the institution. Inflation control is the main purpose of Bank of Canada.

Frank Graves is the president of Ekos Research pollster and said that Poilievre was “nurturing exactly the same forces as (former U.S. President Donald Trump) nurtured.” Graves describes this group of voters as “ordered populists” and claims they share many common values.

Poilievre made them coffee, then echoed their anger in Parliament.

Like the U.S. Similar to U.S. Senator Rand Paul’s push to audit Federal Reserve Board in the past, Poilievre would like to see audit Bank of Canada’s bond-buying program.

Derek Holt of Scotiabank Capital Markets Economics said that Poilievre was merely “political rhetoric.” He believes there is little chance of policy change.

In the past, politicians have attacked the Bank of Canada. Once in the 1950s and 60s which was ended by the Bank’s independence from policy setting being codified in law. Another time in 1990s when Jean Chretien, a former Liberal, took aim at it.

Trudeau will defend the bank.

Trudeau said that Canada has the highest-respected central bank in the world and this is due to its independence from interference and political actors.

Poilievre’s promise to turn Canada into the “blockchain Capital of the World” is that other currencies, such as bitcoin, will allow Canadians “to opt out of inflation.”

Dodge declared, “That’s complete nonsense.” “There is an international economic system… that you can’t stand completely apart from.”