‘Ontarians simply cannot cope’: Ford calls on Bank of Canada to stop raising interest rates

Premier Doug Ford is calling on the Bank of Canada to stop raising interest rates ahead of its next decision expected to come down Wednesday.

Ford echoed British Columbia Premier David Eby, who wrote a letter to BoC’s governor Tim Macklem last Thursday, urging him to think about the “human impact” of the hikes.

In his letter sent on Sunday, Ford writes that “interest rate increases are hurting people,” and harming families and small businesses alike.

He says the 10 interest hikes over the last 18 months have had a “devastating impact on people who are already struggling to get by.”

RELATED: B.C. urges Bank of Canada to avoid ‘devastating’ interest rate hike in September

The last rate hike on July 12 brought the BoC’s key interest rate up by a quarter of a percentage point, to five per cent — the highest it’s been in more than two decades.

The rate hikes are being used as an anti-inflation measure by the BoC, but Ford says it is having the opposite effect, especially for homeowners.

“While the Bank of Canada has a mandate to keep inflation low, the latest monthly figures from Statistics Canada show that because of the interest rate hikes, inflation on mortgage costs for Ontario families is now at 30 per cent,” reads Ford’s letter.

“Ontarians simply cannot cope with the higher monthly payments on their homes brought about by repeated interest rate hikes.”

Yesterday, I wrote to the Governor of the Bank of Canada echoing Premier @Dave_Eby’s call to stop raising interest rates. Ontario families and businesses are struggling to make ends meet and cannot afford the crushing costs brought about by repeated interest rate hikes. pic.twitter.com/cdVE9IQzmH

— Doug Ford (@fordnation) September 4, 2023

Ford goes on to suggest that instead of rate hikes, the federal government should work with provinces and territories to build much-needed infrastructure, which in turn will create more jobs and generate better paycheques and “help improve the production of goods and services that will reduce the cost of our everyday essentials that have never been more expensive.”

The Bank of Canada is currently in a blackout period ahead of Wednesday’s decision and refrains from making any comments around this time.

With files from Charlie Carey