2023-06-07 16:23:27
The Conservative leader, Pierre Poilievre, deplored the new 25 basis point increase in the key rate by the Bank of Canada, an increase for which he attributes responsibility to the “inflationary” deficits of the Trudeau government.
Speaking to his caucus on Wednesday morning, Mr Poilievre reiterated that he would use “every parliamentary tool” at his disposal to “prevent the passage of the 2023 budget before the end of the work, unless the government promises a return to a balanced budget”.
“The only way to avoid this financial crisis is to reduce inflation and interest rates before these mortgages are renewed in 2026 and 2027, otherwise the crisis will be massive and incendiary”, launched the conservative leader, opponent of the approach of Ottawa and the Bank of Canada.
The Bank of Canada resumed raising the key interest rate on Wednesday after a six-month pause, which will increase the pressure especially on those who borrowed at low rates before the drastic hikes in 2022.
“They took those mortgages because the money you printed and threw into our economy inflated house prices and the mortgages to buy them,” Poilievre said.
The current dynamic puts Canada in “economic danger”, he believes. “Justin Trudeau, you are leading us into a real debt crisis for Canadians across the country,” he accused.
Freeland tempers
Speaking at the same time, the Minister of Finance, Christian Freeland, underlined that the financial pressure on families is an issue that “worries a lot”.
Mme Freeland, also Deputy Prime Minister, however made it clear that the Bank of Canada was “independent” of the government, but that it “respected” its decisions.
The “power of the Canadian economy” lies in the strength of the labor market, whose low unemployment rate, around 5%, is a real “cornerstone” of Ottawa’s approach, according to the minister.
“The thing we have is that there are lots of jobs, and people who want to work can work. For me, it is the cornerstone of our economic policy and of the Canadian economy, because I know that for each and everyone, having a job is the key to having a good life,” assured Ms.me Freeland.
Without promising a return to a balanced budget, she assures us that Ottawa will maintain a “balanced approach” combining “compassion” and responsibility.
She says she is sure that Canada is “approaching the end of this difficult period” of increasing interest rates. “With each month we are more rock of the end.”
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