Trudeau says Bank of Canada rate hike bad news for Canadians

Prime Minister Justin Trudeau acknowledged Wednesday that the Bank of Canada raising its key interest rate to the highest level in 22 years is bad news for Canadians.

“This is not the news that any Canadian wanted to receive this morning,” Mr. Trudeau said, speaking at the conclusion of a NATO Leaders’ Summit in Vilnius, Lithuania.

Mr. Trudeau was responding to news that the Bank of Canada has increased its benchmark interest rate to 5 per cent and pushed out the timeline for getting consumer prices under control. There’s a story here.

The Prime Minister said, based on his discussions with other leaders at the summit, that the cost of living is an issue in many countries, with record high inflation, and interest rates increasing.

“People around the world are facing significant challenges,” said Mr. Trudeau, noting that his government has stepped up with targeted support including a grocery rebate to 11 million Canadians, rebates for some Canadians to offset the costs linked to Ottawa’s price on carbon, and other programs, including a housing benefit.

“We will continue to be there for Canadians through these difficult times,” he said.

In Penticton, B.C., federal Conservative Leader Pierre Poilievre and leader of the official opposition, told a news conference that the debt on Canadian households is colliding with rapidly rising interest rates.

Mr. Poilievre said the rates were obviously set by the Bank of Canada, but that the federal Liberal government’s carbon tax and deficits are driving the inflation rate that forces the Bank of Canada to increase interest rates.

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