NDP’s Jagmeet Singh Criticizes Bank Of Canada: “There’s No Merit To Their Approach”

NDP leader Jagmeet Singh is questioning the current set of anti-inflation solutions the Bank of Canada and the federal government have implemented so far.

Toronto Star reports that Singh makes the case in his letter to Prime Minister Justin Trudeau for the Bank of Canada to temper its aggressive rate hikes and emphasizes that the institution is and should be independent. He argued that the current approach has become overly severe for ordinary Canadians.

The Burnaby South MP added that employees’ earnings have not kept pace with continual price rises in essential items. Meanwhile, many of the causes of such increases, such as the war in Ukraine, supply chain snarls, and “price hikes fuelled by corporate greed,” are beyond Canadians’ control.

He further addressed Trudeau, saying “your government has a responsibility too” and argued to remove GST off home heating costs and mental health counseling, overhaul EI, and make it easier to prosecute corporations for price rigging.

Singh announced on Twitter recently that “New Democrats have secured an investigation into your food prices,” citing the Competition Bureau’s decision to probe food costs.

Appearing on CTV’s Question Period, Singh was more frank in his criticism of the Bank of Canada, claiming, “there’s absolutely no merit to their approach.”

“We absolutely need to combat inflation. But if the Bank of Canada’s approach has nothing to do with the root causes of inflation, and is only going to cause pain for Canadians, then we’ve got to question why is that the approach they’re taking?” the MP said.

In September, the Bank of Canada raised borrowing costs by 75 basis points, bringing the overnight rate into a restrictive territory of 3.25%. Economists now expect the bank to raise interest rates by another 75 basis points after the consumer price index rose 6.9 percent year-on-year, indicating a declining but slightly higher-than-expected rate of annual inflation.

Consumers paid 11.4% more for food purchased at stores, marking the sharpest year-over-year pace since August 1981 as the category continues to rise at a faster pace than overall CPI for 10 straight months.

“Food prices continue to surge, while gasoline prices have tamed but remain elevated,” wrote Benjamin Reitzes, Macro Strategist at the Bank of Montreal. “The latest inflation figures aren’t likely to provide any leeway to soften [the Bank’s] hawkish rhetoric.”

The Organisation for Economic Co-operation and Development even predicts the Bank of Canada will raise rates up to 4.5% by 2024.


Information for this briefing was found via Toronto Star and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Jagmeet Singh Virtue Signals to the Working Class Whilst Sporting a Rolex Watch

In preparation for the return of the House of Commons this month, NDP leader Jagmeet...

Thursday, January 19, 2023, 07:41:00 AM

Consumer Prices In Canada Rise 2.5% In July, Slowest Pace Since March 2021

Canada’s Consumer Price Index (CPI) increased by 2.5% year-over-year in July, marking the slowest inflation...

Tuesday, August 20, 2024, 08:48:34 AM

European Consumer Prices Soar by Most on Record Just as Russia Cuts Exports

Consumer prices across Europe soared by the most on record in February, and will likely...

Saturday, March 19, 2022, 05:08:00 PM

Annual Inflation Jumps to 2.2% In March

Annual inflation levels across Canada jumped to 2.2% in March, largely due to the drop...

Thursday, April 22, 2021, 10:44:00 AM

Larry Summers Delivers Austerity Message While Reclining in Tropical Paradise

Former Treasury Secretary Larry Summers recently applauded the Federal Reserve for their stance on unemployment...

Friday, January 13, 2023, 02:22:00 PM