Finance Minister Chrystia Freeland said yesterday that adjusting interest rates is “not my job,” Her remarks followed another increase in the Bank of Canada rate to the highest level since 2008..“It’s not my job to do the Bank’s job,” Freeland told reporters. “I do think it’s important for Canadians to recognize the Bank has the mandate and the tools and the expertise to tackle inflation.”.“Is it the right approach?” asked a reporter. “I have found myself coming back time and again to what are Canada’s fundamental strengths,” replied Freeland. “I think a lot about peace, order and good government. That is Canada.”.“What is the trigger point for when you decide to do something?” asked a reporter. “It’s a very important question and something the Prime Minister and I have devoted a lot of time to talking about with each other,” replied Freeland..According to Blacklock's Reporter, the Bank of Canada yesterday raised its key rate on interbank loans from 2.5 to 3.25%, the highest rate since April 2008. Another rate increase is scheduled for October 26. “The policy interest rate will need to rise further,” the Bank said in a statement..“Inflation remains high,” said the Bank. It is currently 7.6% according to Statistics Canada’s benchmark Consumer Price Index..Conservative MP Dan Albas (Central Okanagan-Similkameen, B.C.), Opposition finance critic, said the higher rate “means more pain for Canadians.” The Bank of Canada rate has increased three points since March 2..“Canadians appear poised to face a significant economic downturn,” Albas said in a statement. “Canadians deserve a government that will fight the cost of living crisis.”.New Democrat leader Jagmeet Singh also protested the rate hike. “The burden of the cost of living going up should not fall on the shoulders of workers,” Singh told reporters..“That’s what is going to happen if there is no other step taken,” said Singh. “If the only response to the cost of living going up and inflation going up is the Bank of Canada increasing interest rates, then all that’s going to happen is workers are going to suffer.”.A federal periodical Canadian Government Executive yesterday questioned if the cost of living would hasten an end to the minority 44th Parliament. The magazine in a Note From Our Deputy Editor told federal managers that cabinet appeared to be under pressure..“No doubt the pressure will be on the Liberal government and its NDP partner to deliver on key promises like dental care while managing the inflation situation,” said the note. “The Liberal-NDP confidence and supply agreement will be tested in the months to come.”.New Democrats in a March 22 Supply And Confidence Agreement with Prime Minister Justin Trudeau promised to vote for all cabinet bills for three years in return for a 2023 federal ban on replacement workers, free dentistry by 2025 for households with income below $70,000 a year and permanent federal daycare subsidies.
