National

Political pressure to stop rate hikes now coming from premiers, as BoC decision nears

Darpan News Desk The Canadian Press, 05 Sep, 2023 09:53 AM

Two premiers have sent letters to Bank of Canada governor Tiff Macklem urging the central bank to halt rate hikes ahead of its next rate decision tomorrow.

Ontario Premier Doug Ford sent a letter on Sunday saying families and businesses cannot afford the "crushing impact of further rate hikes," echoing a letter British Columbia Premier David Eby sent on Thursday.

Yesterday, I wrote to the Governor of the Bank of Canada echoing Premier @Dave_Eby’s call to stop raising interest rates. Ontario families and businesses are struggling to make ends meet and cannot afford the crushing costs brought about by repeated interest rate hikes. pic.twitter.com/cdVE9IQzmH
— Doug Ford (@fordnation) September 4, 2023

Yesterday, I wrote to the Bank of Canada to urge them not to increase interest rates. This is not an academic debate - increased rates hurt many people in our province. pic.twitter.com/uCZmVDsxJ2
— David Eby (@Dave_Eby) September 1, 2023

With interest rates soaring, people in BC are being pushed to brink.

Today, I urged the Bank of Canada to not increase rates again in September.

The Bank’s role is to guide monetary policy, my role is to ensure BC voices are heard on decisions that impact them. pic.twitter.com/3BYtTk60zk
— David Eby (@Dave_Eby) August 31, 2023

Associate professor and founding director of McGill University's Max Bell School of Public Policy, Christopher Ragan says it's "unfortunate" that the premiers felt that sending these letters was useful.

Ragan says it brings a political element to monetary policy decisions, which are supposed to be taken independent of government.

The Bank of Canada is an independent institution that receives its mandate from the federal government and is responsible for maintaining a two per cent inflation target.

The central bank is set to make its interest rate decision tomorrow and is widely expected to hold its key rate steady as the economy begins to buckle under the weight of higher interest rates.

Prev Next

MORE National ARTICLES

Canadians cut coupons as food prices surge: survey

The majority of respondents in a Canada-wide survey released Monday said they are using coupons or hunting for sales to cope with increasing food costs. Nearly 20 per cent were also reducing meal sizes or skipping meals altogether in order to save money.

Canadians cut coupons as food prices surge: survey

Horgan 'gained by listening' but fuse burns bright

Horgan, 63, who has twice battled cancer, said last summer that health reasons were forcing him to retire after five years as premier, eight years as NDP leader and five terms as a member of the legislature. He leaves office as one of B.C.'s most popular premiers, whom pollsters consistently rank as one of the most popular leaders in Canada.

Horgan 'gained by listening' but fuse burns bright

Trial for B.C. mayor charged with public mischief

McCallum ran his campaign against the backdrop of the charge laid last December, four months after he complained to the RCMP that a woman collecting signatures to keep the Mounties in Surrey ran over his foot outside a grocery store.

Trial for B.C. mayor charged with public mischief

NTSB seeks inspection of Canadian-made plane

The U.S. National Transportation Safety Board issued an urgent safety recommendation Thursday, calling on Transport Canada and the U.S. Federal Aviation Administration to require immediate inspections of De Havilland Canada DHC-3 airplanes, better known as the DHC-3 Otter.

NTSB seeks inspection of Canadian-made plane

Feds move toward stand-alone dental insurance

Health Canada officials, who gave a briefing on the condition they not be named publicly, said that would help the government refine the program before hiring a company to do the work. The Liberals committed to some form of federal dental-care coverage for low-income Canadians in its March confidence and supply agreement with the New Democrats.

Feds move toward stand-alone dental insurance

Freeland's fiscal update coming Thursday

The fiscal update, to be presented in the House of Commons, will also share the government's outlook for an economy facing high inflation and staring down a potential recession in the coming months.