'People are hurting': Premier Doug Ford calls on Bank of Canada to lower interest rates
Ontario Premier Doug Ford says the people “need a break” from high interest rates, a day before the Bank of Canada announcement.
“People are hurting. They need a break,” the premier said in a post shared on X, formerly Twitter. “It’s time for the Bank of Canada to start lowering interest rates tomorrow.”
On Wednesday morning, the Bank of Canada is slated to make an interest rate announcement and it is anticipated to maintain its key interest rate at five per cent, with most forecasting the first rate cut to come around June.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
Meanwhile, the parliamentary budget officer’s report anticipates the first rate cut to come slightly earlier, forecasting for sometime in April.
Some economists expect the Bank of Canada will begin cutting interest rates around the middle of the year.
“We’ve seen very little, almost no economic growth whatsoever last year,” David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, told CTV News Channel in January. “There’s no indication that we’re going to immediately see growth at the start of this year.”
- READ MORE: 'The year of cuts': Senior econonmist's prediction for 2024, after Bankof Canada decision
Canada’s economy grew at an annualized rate of one per cent in the fourth quarter, exceeding the central bank’s most recent forecast and economists’ expectations. On a per-capita basis, the real gross domestic product dwindled in that same period.
The country’s annual inflation rate dropped to 2.9 per cent in January, falling within the Bank of Canada’s one to three per cent target range. However, the central bank has made it clear its target inflation rate is two per cent.
The PBO says the economy will likely grow by 0.8 per cent this year, slightly lower than the central bank’s projection of one per cent. It also anticipates the federal deficit to grow $46.8 billion for the current fiscal year so long as no new measures are introduced – this means it would exceed the Canadian government’s fall projection of $40 billion.
This is the third time in recent months Ford pleaded with the central bank to do something about its interest rates. In September, Ford urged Tiff Macklem, the central bank’s governor, to “consider the effect higher interest rates are having on everyday people.”
Then, in October, he said, “There is simply no excuse for increasing the already crushing pressure previous interest rate hikes have placed on so many families and business.”
The Bank of Canada raised its key interest rates 10 times since March 2022 in an effort to bring inflation to its target and tighten economic activity.
The central bank is set to publish its outlook for Canada’s economy and inflation on April 10.
With files from Phil Tsekouras and The Canadian Press
CTVNews.ca Top Stories
Here's where Canadians are living abroad: report
A recent report sheds light on Canadians living abroad--estimated at around four million people in 2016—and the public policies that impact them.
'We are declaring our readiness': No decision made yet as Poland declares it's ready to host nuclear weapons
Polish President Andrzej Duda says while no decision has been made around whether Poland will host nuclear weapons as part of an expansion of the NATO alliance’s nuclear sharing program, his country is willing and prepared to do so.
Harvey Weinstein hospitalized after return to New York from upstate prison
Harvey Weinstein’s lawyer said Saturday that the onetime movie mogul has been hospitalized for a battery of tests after his return to New York City following an appeals court ruling nullifying his 2020 rape conviction.
Deadly six-vehicle crash on Highway 400 sparked by road rage incident
One person was killed in a six-vehicle crash on Highway 400 in Innisfil Friday evening.
Invasive and toxic hammerhead worms make themselves at home in Ontario
Ontario is now home to an invasive and toxic worm species that can grow up to three feet long and can be dangerous to small animals and pets.
Central Alberta queer groups react to request from Red Deer-South to reinstate Jennifer Johnson to UCP caucus
A number of LGBQT+2s groups in Central Alberta are pushing back against a request from the Red Deer South UCP constituency to reinstate MLA Jennifer Johnson into the UCP caucus.
Opinion I just don't get Taylor Swift
It's one thing to say you like Taylor Swift and her music, but don't blame CNN's AJ Willingham's when she says she just 'doesn't get' the global phenomenon.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
First court appearance for boy and girl charged in death of Halifax 16-year-old
A girl and a boy, both 14 years old, made their first appearance today in a Halifax courtroom, where they each face a second-degree murder charge in the stabbing death of a 16-year-old high school student.