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 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.
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I for one find it strange. People call this idea “communist” Why are we allowing Corporations to artificial raise prices well their pockets are over flowing with profits? Why are corporate officials making over 5000 percent more than an employee at the bottom? Look at history .. this was not allowed back in our history. Yet we give people goverment funds for food which spend it on food that is over priced? We give people loans on over priced houses, cars and even vacations? I find it .. obtuse
It seems the priemiers might in fact be guilty of trying to play political interference with an institution that is supposed to be politically unbiased and not swayed by political pressure.
There political rhetoric is designed to be heard and taken into account by the governor of The Bank of Canada seems like political interference that was stated publicly with that sole intent.
Personally, I find it quite pathetic ! It is in fact counter productive when trying to mitigate the side effects of materialism and its negative effect on the planet. They are politicians prone to sudden 360 behaviour.
I think Justin Trudeau should stop trying to achieve his goals and those of his climate ministers by raising taxes.Although I believe and concur with Justin Trudeau that the premier’s are in fact being short sighted and thinking only of allowing consumers a break in the cost of living that was not attainable on a on going basis in reality as the consumer debt loads in Canada are astronomically high . The premier’s for political survival can only think short term and are in fact thinking short term and not on board? We need to reward people who have the courage to take difficult steps.
To be in that position regardless of reasoning is in part due to mental health and addiction issues that are out of hand. Obviously delayed gratification is absent in Canadian household debt ? Maybe Justin Trudeau and his environment minister should contemplate a manipulative move setting aside a increase in the tax of 10% then like the premier’s who publicly denounce raising interest rates should capitulate to interest rates in Canada in the double digits.
Personally I don’t have a problem with either Justin Trudeau or his environment minister in what they are trying to achieve but it is the method that is being used to try and reach the goal . The goal would be better served arguing interest rates as the saving grace as it can be done globally with and in conjuction with financial institutions regardless of country.
He should have implemented the carbon tax when he was first elected as now with all of the polls showing him trailing substantially it was a missed opportunity as he seems to be under the possibility of capitulation of implementing the tax due to political pressure . I don’t think he should capitulate in fact in order to get a handle on Canadian consumer addiction to materialism he should implement the carbon tax while directing the Bank of Canada by way of political interference to raise interest rates to where Canadians understand the meaning of birth nepotism. It depends on what issue people believe is the biggest threat ? And because Justin Trudeau believes it is climate change I think he should start a political campaign ,of why he is taking the stance to see the idea of higher interest rates as the cure based on that premise. He would more than likely reach his goals sooner and with greater ease as it has greater possibilities as a Trojan horse type move.
And the trend his your friend!
“I urge you to consider the effect higher interest rates are having on everyday people who are simply trying to make ends meet.”
Sorry !
But the above comment in retrospect seems to cater to the continuation of ignorance by way of lack of self awareness .
I would urge Canadians to contemplate the true meaning of what constitutes real hardship and if they themselves are not the masters of their own fate.
Real ignorance is a human trait that lacks the inability to apply delayed gratification while ignoring the consequences of ones own actions.
Political pandering by way of retoric to the on going problem of consumerism seems to wander from the globalist agenda in theory.