Ontario Premier Doug Ford said he has concerns about the Bank of Canada’s (BoC) interest rate increases hurting people. .“I share the views of my colleague, Premier David Eby of British Columbia, that many families and businesses are struggling to make ends meet and cannot afford the crushing impact of any further rate hikes,” said Ford in a letter to BoC Governor Tiff Macklem. .BC Premier David Eby urged Macklem not to raise interest rates further because people are hurting on Friday. .READ MORE: Canadian economy contracts in Q2, supporting rate pause.Eby noted the International Monetary Fund believes Canada runs the highest risk among major economies of mortgage defaults, sparking a broader housing crash..“The danger of further unnecessary rate increases is not just to homeowners with mortgages as they renew or lock in at higher rates,” he said. .Over the last one-and-a-half years, Canadians have experienced 10 interest rate hikes, which Ford said have had devastating impacts on people who are struggling to get by. These hikes have forced many families to pay thousands of dollars more per month to cover their mortgage payments. .He added these hikes are harming families and small business owners with lines of credit or other debt. He has heard from many small business owners who had to borrow to make it through the COVID-19 pandemic and are now struggling with these increased costs as they try to ramp up again. .While the BoC has a mandate to keep inflation low, the latest monthly figures from Statistics Canada show inflation on mortgage costs for Ontario families is now at 30% because of the interest rate hikes. Canada’s major banks are expecting a spike in defaults on loans and mortgages..Ford said this causes him “great concern as I hear people all across our province tell me they have to choose between paying their mortgage and putting food on their family’s table.”.Instead of hikes, he said the Canadian government should work with provinces and territories to spend money on and build critical infrastructure projects..These would create more jobs with better paycheques and improve the production of goods and services to reduce the cost of essential items that have never been more expensive..In Ontario, the provincial government has spent large amounts of money on key projects such as transportation infrastructure, including Highway 413, the Bradford Bypass, and the Ontario Line, to support economic growth and get goods to market sooner to keep costs down for people and businesses. .Ford concluded by saying Macklem should “consider the effect higher interest rates are having on everyday people who are simply trying to make ends meet.” .“That is why I join Premier Eby in his call for the Bank of Canada to not raise interest rates any further,” he said. .“Instead, we hope the federal government will work with all premiers to build Canada for Canadians who are counting on us to make life easier and more affordable, now and for the future.”
Ontario Premier Doug Ford said he has concerns about the Bank of Canada’s (BoC) interest rate increases hurting people. .“I share the views of my colleague, Premier David Eby of British Columbia, that many families and businesses are struggling to make ends meet and cannot afford the crushing impact of any further rate hikes,” said Ford in a letter to BoC Governor Tiff Macklem. .BC Premier David Eby urged Macklem not to raise interest rates further because people are hurting on Friday. .READ MORE: Canadian economy contracts in Q2, supporting rate pause.Eby noted the International Monetary Fund believes Canada runs the highest risk among major economies of mortgage defaults, sparking a broader housing crash..“The danger of further unnecessary rate increases is not just to homeowners with mortgages as they renew or lock in at higher rates,” he said. .Over the last one-and-a-half years, Canadians have experienced 10 interest rate hikes, which Ford said have had devastating impacts on people who are struggling to get by. These hikes have forced many families to pay thousands of dollars more per month to cover their mortgage payments. .He added these hikes are harming families and small business owners with lines of credit or other debt. He has heard from many small business owners who had to borrow to make it through the COVID-19 pandemic and are now struggling with these increased costs as they try to ramp up again. .While the BoC has a mandate to keep inflation low, the latest monthly figures from Statistics Canada show inflation on mortgage costs for Ontario families is now at 30% because of the interest rate hikes. Canada’s major banks are expecting a spike in defaults on loans and mortgages..Ford said this causes him “great concern as I hear people all across our province tell me they have to choose between paying their mortgage and putting food on their family’s table.”.Instead of hikes, he said the Canadian government should work with provinces and territories to spend money on and build critical infrastructure projects..These would create more jobs with better paycheques and improve the production of goods and services to reduce the cost of essential items that have never been more expensive..In Ontario, the provincial government has spent large amounts of money on key projects such as transportation infrastructure, including Highway 413, the Bradford Bypass, and the Ontario Line, to support economic growth and get goods to market sooner to keep costs down for people and businesses. .Ford concluded by saying Macklem should “consider the effect higher interest rates are having on everyday people who are simply trying to make ends meet.” .“That is why I join Premier Eby in his call for the Bank of Canada to not raise interest rates any further,” he said. .“Instead, we hope the federal government will work with all premiers to build Canada for Canadians who are counting on us to make life easier and more affordable, now and for the future.”
