Canada's NDP

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January 25th, 2023

Budget-buster interest rate hike will stretch families’ spending even thinner

Canada's NDP Leader Jagmeet Singh released the following statement in response to the latest interest rate hike by the Bank of Canada:

“The Bank of Canada’s eighth interest rate hike in a row is another hard hit on Canadian families whose budgets are already stretched thin. Higher interest rates will mean higher mortgage payments and rent prices, and a tougher time paying off credit card bills.

This rate hike is a budget-buster, and it’s going to put a good home out of reach for even more families.

Many economists, and even the Liberal government, warn that these interest rate hikes are driving Canada towards a self-inflected recession that will cost Canadians hundreds of thousands of jobs. This is a scary time — especially for the 60 per cent of workers across Canada who can’t access Employment Insurance (EI) because the Liberals haven’t bothered to cover them.

In these difficult times, Canadians turn to their government for help, but the Liberals have left people to fend for themselves. In contrast, rich CEOs of Big Oil and grocery chains driving inflation even further up get a lot of Justin Trudeau’s attention as he protects them from a windfall tax and anti-gouging laws.

New Democrats aren’t fighting to make the rich richer. We fight to help you and your family get ahead.

New Democrats will continue to pressure the Liberals to take action on the cost of living, rather than leaving it all in the hands of the Bank of Canada — which is clearly not looking out for everyday workers and families.”