Doug Ford has become the second Canadian premier to formally express his displeasure with interest rate hikes, calling on the Bank of Canada to end the increases, which he says are negatively impacting individuals.
In a letter sent to the governor of the Bank of Canada on Sunday, Ford echoed the recent statements of British Columbia Premier David Eby, stating that interest rate hikes are placing a burden on people and businesses.
“Your rate hikes have made it extremely difficult for young people, newcomers, and first-time homebuyers to find affordable housing,” Ford said in his letter.
He argued that the cooling inflation should be a reason not to further raise interest rates.
The central bank’s key interest rate currently stands at 5.0 per cent after consecutive increases.
Overall inflation decreased to 3.4 per cent in May from a peak of 8.1 per cent in June 2022, but policymakers at the Bank of Canada have expressed concern that a tight labor market and a resilient economy could make it more challenging to control inflation.
Ford emphasized that people in Ontario are struggling to cope with the higher monthly mortgage payments resulting from the increased Bank of Canada rates.
He highlighted his government’s plans for job creation and called for collaboration with the federal government and other provinces to invest in critical infrastructure projects that will create more well-paid jobs.
The federal government helps set the mandate for the Bank of Canada, but the central bank independently makes its monetary policy decisions.
“Instead of implementing painful interest rate hikes, the federal government should collaborate with provinces and territories to invest in and develop critical infrastructure projects that will generate more jobs with higher incomes,” Ford wrote.
— with files from Global News’ Craig Lord
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