The New Democrats have urged the federal government to emulate the approach of British Columbia’s Premier David Eby by requesting the Bank of Canada to halt the practice of escalating interest rates. Eby previously reached out to Tiff Macklem, Governor of the Bank of Canada, last week with a plea to discontinue further rate hikes during a period where Canadians are grappling with increasing food and rent costs.
This appeal made by Eby drew applause from NDP Leader Jagmeet Singh who suggested today that the Liberals should reassess the central bank’s mandate to ensure the primary focus is on the welfare of the public.
When queried for additional details related to the proposed amendments, Singh’s communications director explained that the Liberals have the option to propose a pause on rate hikes during routine interaction between the Governor and the Federal Finance Minister.
However, it is important to note that although the federal government and the Bank of Canada jointly define the central bank’s mandate, its operational elements, including decisions pertaining to interest rates, function autonomously.
In a recent announcement, the central bank confirmed that it will maintain its core interest rate at five per cent, amidst growing indicators of an economic slowdown.
