Since March, the Bank of Canada has now raised its key interest rate by 400 basis points — a full four percentage points — making good on its vow to “front-load” its battle against inflation.
Indeed, financial markets on Wednesday read the central bank’s commentary to mean that its hiking of rates is nearly done. Maybe one more time in January. And that’s not all. The domestic-facing side of the Canadian economy is losing momentum, and consumption — also known as shopping — has dropped off. That’s not surprising given thewe shoppers are carrying these days — debt that has suddenly become far more expensive to carry.
In Ottawa, the Conservatives and NDP both wasted no time in heaping blame on the Liberals for Wednesday’s interest-rate hike, saying Justin Trudeau’s lack of anti-inflation action has led to uncomfortably high borrowing costs for consumers.While the central bank’s rate-hiking exercise will have ripple effects on Canadian households and businesses for many months to come, most of the inflation these days is due to global factors, recent number-crunching by Scotiabank shows.
hscoffield The fight with inflation is almost over the next step bankruptcy, as long as Trudeau continues to spend like a teenager with his parents credit card.
hscoffield bankofcanada it isn’t the 80s raising rates hasn’t worked. I new it wouldn’t, how come you didn’t? It is your job to know is it not? Bank student loans for post secondary are at 7.5-8% interest? How do they afford to go to school? Not all qualify for govt grants and loans.
hscoffield Unimaginable. We bought our house in Calgary at 3.25% variable interest rate June 2022. Today it is now 6% with almost 1500$ added on our monthly mortgage payments. With the way things are going Canadians will start to lose their homes.And I am not sure we will be able to keep up
hscoffield Interest rate hike mania is yet another insidious move to subjugate labor and perpetuate class struggle and division. Interest rate hikes are another instance where poor and middle classes are being scourged to pay the wealthy/government bills. Egregious.
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Opinion | The pressure is on Justin Trudeau, after the Bank of Canada signals its fight with inflation is almost overOpinion: Something has changed in Bank of Canada Governor Tiff Macklem’s thinking: it’s now all about “whether” he should continue to ratchet up the cost of borrowing at such an alarming speed, hscoffield writes. hscoffield
Source: TorontoStar - 🏆 60. / 55 Read more »
Poilievre appears in rare Commons scrumConservative Leader Pierre Poilievre joined press gallery reporters on Dec. 7 in a rare scrum on Parliament Hill. Standing at the microphone before Question Period, it was Poilievre’s (Carleton, Ont.) first back-and-forth with the press in the House of Commons’ foyer in nearly two months. The nearly nine-minute Q&A went smoother than his last appearance on Sept. 13, days after he became leader, when Global News’ David Akin took issue with Poilievre’s team’s plan to not take questions during the availability. Since that testy exchange—as was the case during the seven-month leadership race—Poilievre’s interactions with media have been minimal and mostly with local reporters over parliamentary journalists. Conservative Leader Pierre Poilievre spoke with reporters on Dec. 7 in the House of Commons’ foyer about a RCMP contract awarded to China-linked company that is now under review, as well as the Bank of Canada interest rate hikes. The Hill Times photograph by Andrew Meade Asked about the Bank of Canada raising the benchmark interest rate to 4.25 per cent, Poilievre called it an ‘another uppercut for Canadians.’ The Hill Times photograph by Andrew Meade Poilievre said the Bank of Canada interest rate hike is ‘all because of the inflationary deficits and spending of [Prime Minister] Justin Trudeau. Even the Bank of Canada governor has said if deficits were smaller, inflation and interest rates would be lower.’ The Hill Times photograph by Andrew Meade Poilievre blamed the Bank of Canada interest rate hike on Trudeau, saying the ‘average Canadian is paying the price for that’ and suffering as a result. The Hill Times photograph by Andrew Meade Poilevre spoke to reporters for nearly nine minutes ahead of Question Period on Dec. 7. The Hill Times photograph by Andrew Meade The Hill Times At least he lets the press gallery ask questions and he answers them. Unlike JustinTrudeau who, when he is NOT on vacation, does prepared talking points and if you ask a question … HE DOES NOT CARE. Trudeau gives Canada sound bytes NEVER answers.
Source: TheHillTimes - 🏆 11. / 79 Read more »
Doug Ford no fan of interest rate hikesOntario Premier Doug Ford unhappy with Bank of Canada interest rate hike, calls on Justin Trudeau government to cut carbon tax on gas. suntooz Same here ! suntooz No one is. suntooz Interest rate hikes are the counter-intuitive measures that rarely defy odds of them doing all good!
Source: TheTorontoSun - 🏆 23. / 68 Read more »