Ontario Premier Doug Ford has joined B.C. Premier David Eby in calling for the Bank of Canada (BoC) to halt further interest rate hikes. Mr. Ford expressed his concerns on social media, stating that Ontario families and businesses cannot afford the increasing costs brought about by repeated rate hikes. In a letter to Governor Tiff Macklem, Mr. Ford echoed Premier Eby’s views that Canadians have already endured ten interest rate hikes over the past 18 months, which has had a devastating impact on those who are already struggling financially.
The BoC is set to make its next decision on interest rates on September 6. Since March 2022, rates have been raised 10 times, resulting in the current interest rate reaching its highest level in 22 years at 5 percent. Mr. Ford emphasized that families are now paying thousands of dollars more each month to cover their mortgage payments, with some Canadians seeing their payments double or triple. He highlighted the difficulties faced by young people, newcomers to Canada, and first-time homebuyers in finding affordable housing.
According to Mr. Ford, the latest figures from Statistics Canada show that mortgage costs for Ontario families have seen a 30 percent increase, directly attributed to the rate hikes. He also warned that major banks in Canada are expecting a surge in defaults on loans and mortgages as a consequence of these hikes. People in Ontario have reportedly shared their struggles with Mr. Ford, stating that they are forced to choose between paying their mortgage or providing food for their family.
To address the challenges faced by Canadian families, Mr. Ford called on the federal government to collaborate with provinces and territories in investing in critical infrastructure projects that would create more jobs and reduce the cost of essential goods. He, along with Premier Eby, appealed to the Bank of Canada to avoid further interest rate increases. Premier Eby, in his August 31 letter, urged the bank to consider the human impact of these rate hikes and the detrimental effect they would have on inflation and mortgage rates.
The Bank of Canada declined to comment on Mr. Eby’s letter at this time, as they are currently in the blackout period prior to their next interest rate decision. The voices of Canadian leaders like Mr. Ford and Mr. Eby are attempting to represent the concerns of individuals and ensure that their hardships are acknowledged in the decision-making process.