Economics
Doug Ford Becomes Second Premier to Urge Bank of Canada to Stop Rate Hikes
“I urge you to consider the effect higher interest rates are having on everyday people who are simply trying to
The post Doug Ford Becomes Second Premier…
“I urge you to consider the effect higher interest rates are having on everyday people who are simply trying to make ends meet.”
Ontario Premier Doug Ford has appealed to the Bank of Canada to halt its ongoing interest rate hikes, citing the financial challenges faced by families and businesses in the province.
The central bank has raised interest rates 10 times since March 2022, initially as a measure to combat inflation. After a brief pause in January to assess the economic impact, it resumed rate hikes in June. The Bank of Canada is poised to announce its next interest rate decision this Wednesday.
Ford expressed his concerns in a letter addressed to Bank of Canada governor Tiff Macklem, emphasizing the adverse effects of these rate hikes on young people, newcomers, and first-time homebuyers. He called on the bank to consider the strain higher interest rates have placed on everyday individuals struggling to make ends meet.
“While the Bank of Canada has a mandate to keep inflation low, the latest monthly figures from Statistics Canada show that because of the interest rate hikes, inflation on mortgage costs for Ontario families is now at 30 percent,” the premier wrote.
“Ontarians simply cannot cope with the higher monthly payments on their homes brought about by repeated interest rate hikes.”
Recent figures show that mortgage loan debt, due to rising interest rates, is the biggest driver of household debt across the country.
Ford’s plea mirrors a similar letter penned by British Columbia Premier David Eby to Governor Macklem on August 31.
Ford proposed an alternative approach, suggesting that the federal government collaborate with provinces and territories to invest in critical infrastructure projects that could generate higher-paying jobs and improve the production of goods and services. Such initiatives, he argued, would help alleviate the soaring costs of essential goods and services, which have reached unprecedented levels.
Ford’s approach mirrors Eby’s proposal in a letter to Prime Minister Justin Trudeau, which suggested a targeted approach that focuses on housing and infrastructure improvements for a long-term anti-inflationary benefits while growing the economy and improving productivity.
The Bank of Canada’s mandate includes maintaining low and stable inflation while promoting Canada’s economic and financial well-being. While the bank has yet to respond to Ford’s letter, its governing council currently observes a no-comment blackout period ahead of the upcoming interest rate decision, as stated on its website.
Information for this story was found via CBC News, City News, X/Twitter, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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