The Bank of Canada gave its employees $45 million in pay raises and bonuses during the pandemic even though it failed to hit its inflation target, said the Canadian Taxpayers Federation citing documents it obtained.
“Why is the Bank of Canada patting itself on the back and handing out millions in bonuses and pay raises while Canadians are struggling to pay for groceries and gas?” asked Franco Terrazzano, federal director of the federation.
“If its objective is to keep inflation low, then it doesn’t make sense for Canada’s central bank to hand out bonuses and pay raises while the cost-of-living soars” from a bank policy limit of two per cent inflation to 8.1 per cent in the most recent report from Statistics Canada.
In 2020, the Bank of Canada gave pay raises to 1,728 employees, costing $5.3 million. In 2021, it gave pay raises to 1,857 employees, costing $5.2 million. It did not cut the pay of any employees in 2020 or 2021.
In addition to pay raises, the Bank of Canada gave bonuses to 1,632 employees in 2020, costing $16.2 million. In 2021, it gave bonuses to 1,752 employees, costing $18.4 million. The Bank of Canada told the CTF that it hands out bonuses for “successfully meeting or exceeding expectations.”While the Bank of Canada is in charge of monetary policy, economists point to federal government psndemic spending for causing inflation.