- Central bank mandates are to target inflation, not to bankrupt central governments because they do not approve of fiscal policies.
- Central banks always have had to maintain their balance sheet sizes, and there were a number of test cases of quantitative easing over the past decades.
- A weaker Canadian dollar boosts exporters, creating the theoretical possibility of rebalancing the private sector away from housing.
- The Bank of Canada is boxed in because of debt, but Federal Government debt is not the source of concern.
For further details see:
Rising Interest Rates Is A Good Thing For Governments