Another provincial leader has issued an urgent plea to the Bank of Canada, advocating for a halt in the continual rise of interest rates. Ontario Premier, Doug Ford, took it upon himself to write a letter directly to Tiff Macklem, governor of the central bank. His correspondence stemmed from his concern regarding the detrimental effects the current rates are inflicting on families and businesses across the province.
Ford now stands as the second premier expressing concerns about the mounting hikes. The initative was first taken by British Columbia Premier, David Eby, who had sent a similar message to Macklem just days before.
The interest rate increment comes after the Bank of Canada pushed its principal interest rate to five percent back in July. This dramatic increase drew justification from forecasts indicating a prolonged period necessary to return the national inflation rate back to the bank’s ideal two percent goal.
In his direct communication with Macklem, Ford pleaded for the consideration of “the effect higher interest rates are having on everyday people”. His fervour for his cause is in anticipation of the bank’s forthcoming announcement about the next interest rate decision, to be made on Wednesday.
The missive noted an alarming frequency of interest rate increases, pointing out that the bank has made ten such adjustments in a timespan less than two years and subsequently costing families an increased monthly spending of “thousands of dollars” to manage their mortgage payments.
In another solemn note, Ford addressed the anticipation of a surge in defaults on loans and mortgages, an issue expected to arise directly from the interest rate increments. He impresses upon the need for the federal government to seek collaboration with provinces and territories with a common goal of investing in and developing critical infrastructure projects, rather than plunging into another hike of interest rates.
