(Bloomberg) -- Bank of Canada Governor Tiff Macklem urged elected officials to consider the inflationary consequences of their spending plans as the central bank tries to cool price pressures. 

Macklem, speaking to a committee of lawmakers in Ottawa, said the combined fiscal promises of governments mean that spending may increase at a rate that stokes consumer price inflation, complicating the bank’s attempt to bring it back to the 2% target. 

“It will definitely make it more difficult to get inflation down, if all that spending is spent,” Macklem said Monday evening, adding that elected officials should prioritize policies that expand supply, not just demand, when considering new outlays. 

The governor was careful to say it’s also an issue for provincial governments to consider, not merely the federal government. 

“More focus by governments on the inflationary consequences of their spending decisions would be helpful,” Macklem said. The comments suggest monetary policymakers in Canada are increasingly worried that they’re working at cross purposes with governments in the inflation fight. 

Macklem mentioned lower economic growth and higher interest rates as having an impact on future government budgets. Finance Minister Chrystia Freeland is set to deliver a fiscal statement in the coming weeks, and Ontario, the largest province, will provide its own financial outlook later this week.

“I don’t think fiscal policy in Canada is in a situation where it’s unsustainable,” Macklem told the House of Commons finance committee. “But I do think protecting our very good fiscal position is important.”

A majority of economists surveyed by Bloomberg say Prime Minister Justin Trudeau’s generous spending programs and expanded targets for immigration have contributed to a need for higher interest rates this cycle, which has seen the central bank’s policy rate jump to 5% from 0.25% in a little over a year and a half.

“It’s going to be easier to get inflation down if monetary and fiscal policy are rowing in the same direction,” Macklem told reporters last week after holding the rate steady. 

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