Bank of Canada, Crown corporations set to align with Liberal cost-cutting plans

The Bank of Canada and most other federal Crown corporations will be looking to trim their budgets alongside a broader government effort to cut costs.

A spokesperson for the Bank of Canada confirms the central bank will “align” with the Liberal government’s plans to carve out savings of 15% in departments’ operational spending over the next three years.

The Bank of Canada is a Crown corporation responsible for monetary policy in Canada, but operates independently and its budget is managed by its own board of directors.

An internal email obtained by The Canadian Press shows Bank of Canada staff were informed Tuesday of the central bank’s plans to trim costs.

A Treasury Board spokesperson confirms that most Crown corporations and other federally funded institutions are also subject to the Liberals’ cost-cutting exercise, as first reported by the Toronto Star.

Prime Minister Mark Carney has touted plans to “spend less” and “invest more” ahead of his plan to publish a new budget in the fall.

Federal cabinet ministers received letters on July 7 asking them to find savings of 7.5% in their budgets starting in fiscal 2026. That savings target rises to 10% the following year and 15% in 2028.

Craig Lord, The Canadian Press

Craig Lord is a reporter with The Canadian Press, a national news agency headquartered in Toronto and founded in 1917.