Ottawa, ON – The Hon. Ed Fast, Conservative Shadow Minister for Finance, and Gérard Deltell, Conservative Shadow Minister for Innovation, Science and Industry, released the following statement on the Bank of Canada’s interest rate hike:
“It’s time for Justin Trudeau to start thinking about monetary policy.
“Justin Trudeau has more than doubled the national debt to $1.3 trillion, spending more than all previous Prime Ministers combined. He has spent a staggering $400 billion over and above normal levels just in the past two years, with hundreds of billions more to come. All of this has put enormous upward pressure on inflation.
“Now, in an effort to quell the inflationary crisis which is aided and abetted by the Trudeau Liberals’ out-of-control borrowing and spending, the Bank of Canada has hiked interest rates to 0.5 per cent and is expected to raise rates further. One-in-four Canadians say this will have a “major negative impact” on their household finances.
“Justin Trudeau has spent more and achieved less, contributing to the cost of living crisis and raising the pressure on the Bank of Canada to act. This interest rate hike, along with the Liberals’ high tax, high spending agenda and complete disregard for monetary policy, will put unprecedented pressure on Canadian families and businesses.
“Budget 2021 proposed $166 billion of new spending over the next four years. The continuation of Justin Trudeau’s out-of-control spending means that there will be even more pressure on the Bank of Canada to raise rates in order to get inflation under control in the years ahead.
“In the last budget, Finance Minister Chrystia Freeland failed to implement a realistic fiscal anchor over the short, medium, and long-term that would have signalled her government’s commitment to return Canada’s finances back to balance.
“To make matters worse, the Liberals’ refusal to deliver a plan to reopen our economy and lift mandates and lockdowns has exacerbated inflationary pressures, especially the critical labour shortages we are seeing throughout our economy.
“The Liberals’ massive borrowing binge will make life even more expensive for Canadians. Earlier this week, the Parliamentary Budget Officer revealed that interest costs on the federal debt will rise to a whopping $40 billion a year by 2025-26 and could get even worse as interest rates continue to rise.
“Canadians from coast-to-coast-to-coast are experiencing firsthand the damage that Justin Trudeau has inflicted on our economy. 53 per cent of Canadians can’t keep up with the cost of living. Groceries are costing families $1000 more this year. The cost of housing is leaving many Canadians unable to afford a roof over their heads, and the dream of homeownership has slipped away for millions of families, with prices up a record 28 per cent just this year.
“Enough is enough. Canadians can’t afford a Prime Minister who willfully ignores monetary policy.
“Conservatives will continue to be the voice for the millions of Canadians left behind in Justin Trudeau’s economy and who are looking for relief from Canada’s affordability crisis. It’s time to get spending under control and for a new approach that will create a dynamic and more prosperous Canada. It’s time to cut Liberal waste and failure and to put an end to their high tax, high debt agenda. It’s time for a fresh start.”