Carbon Tax Responsible for 16% of Inflation: Bank of Canada Governor

The BoC governor says inflation would drop 16 percent if Ottawa was to remove its carbon tax altogether.

Bank of Canada governor Tiff Macklem speaks during a news conference following an interest rate announcement, in Ottawa on Oct. 25, 2023. The Canadian Press/Adrian Wyld

If the Liberal government were to abandon the carbon tax entirely, inflation in Canada would drop 16 percent, says Bank of Canada governor Tiff Macklem.

Mr. Macklem provided this information while testifying before the House of Commons finance committee on Oct. 30.