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Ontario Premier Doug Ford asks Bank of Canada to halt rate hikes

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The Canadian Press


Published Monday, September 4, 2023 3:13PM EDT


Last Updated Monday, September 4, 2023 3:13PM EDT

Another provincial premier is making a direct appeal to the Bank of Canada to stop raising interest rates.

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Ontario Premier Doug Ford says he wrote directly to the central bank’s governor Tiff Macklem on Sunday because of the devastating impact current rates are having on the province’s families and businesses.

He becomes the second premier to voice objections to further hikes after British Columbia Premier David Eby sent a similar letter to Macklem last Thursday.

The Bank of Canada raised its key interest rate to five per cent in July, citing projections suggesting it will take longer for the national inflation rate to reach the bank’s target of two per cent.

Ford’s letter urges Macklem to “consider the effect higher interest rates are having on everyday people” before the bank announces its next interest rate decision on Wednesday.

It says the bank has raised its interest rates 10 times in the last 18 months and is costing families “thousands of dollars” more a month to cover their mortgage payments.

Ford’s letter also says that Canada’s banks are expecting a spike in defaults on loans and mortgages stemming directly from the rate hikes.

The letter goes on to say the federal government should work with provinces and territories to invest and build critical infrastructure projects rather than raising rates again.

This report by The Canadian Press was first published September 4, 2023.

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Clean electricity regulations can be tweaked, but Alberta won't get special deal: Guilbeault – National Post

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Canada's economic growth misses forecasts, backing interest rate pause – Financial Post

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Strikes at 2 more U.S. auto factories to start Friday as UAW ratchets up pressure

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A picketer holds a "UAW On Strike" sign while attempting to block a truck from entering the Ford Motor Co. Michigan Assembly plant in Wayne, Michigan
A picketer holds a ‘UAW On Strike’ sign while attempting to block a truck from entering the Ford Motor Co. Michigan Assembly plant in Wayne, Mich., earlier this month. The autoworkers’ union says 7,000 more workers at two GM and Ford plants are going to walk off the job on Friday at noon ET. (Emily Elconin/Bloomberg)

The United Auto Workers union is expanding its strike against U.S. automakers to two new plants, as 7,000 workers at a Ford plant in Chicago and a General Motors assembly factory near Lansing, Mich., will walk off the job at midday on Friday.

Union president Shawn Fain told workers on a video appearance Friday that negotiations haven’t broken down but Ford and GM have refused to make meaningful progress.

“Despite our willingness to bargain, Ford and GM have refused to make meaningful progress,” Fain said. “That’s why at noon eastern we will expand our strike to these two companies.”

“Not a single wheel will turn without us,” Fain said, adding that the 7,000 soon-to-be picketers are the “next wave of reinforcements.”

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Stellantis, the third major automaker targeted by the union, and the maker of brands like Chrysler, Jeep and Dodge, was spared further action, as Fain said the company’s management has made significant concessions on things like a cost-of-living allowance and a freeze on outsourcing.

The Ford plant in Chicago makes the Explorer and Police Interceptor, as well as the Lincoln Aviator SUV.

The GM plant in Michigan’s Delta Township near Lansing manufactures large crossover SUVs such as the Chevrolet Traverse.

The two new plants join 41 other factories and distribution centres already seeing job action.

So far, the impact on Canada’s auto industry has been muted, as none of the idled factories are major users of Canadian-made components.

Biden says striking autoworkers deserve a ‘significant’ raise

U.S. President Joe Biden visited the United Auto Workers picket line in Detroit on Tuesday, saying the workers deserve a significant raise after sacrifices made during the 2008 financial crisis. Auto companies are doing ‘incredibly well,’ Biden said, ‘and you should be doing incredibly well, too.’

Edward Moya, a strategist with foreign exchange firm Oanda, says that despite the expanded job action, the strike seems to be nearing an “endgame” as the two sides are clearly making slow but steady progress.

“Yesterday, the UAW said they are targeting a 30 per cent pay raise, which is down from the 46 per cent they were asking for in early September,” he said. “Automakers have raised their offer to 20 per cent but were not offering much on retirement benefits. The longer this drags, the more both sides lose, so a deal should be reached in the next week or two.”

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