As one other rate of interest hike looms, Finance Minister Chrystia Freeland is emphasizing the Bank of Canada’s independence after criticism from federal NDP Leader Jagmeet Singh.
Singh despatched a letter to Prime Minister Justin Trudeau Friday warning that one other fee hike can have a “critical influence on households” as fears of a recession develop.
The central financial institution is anticipated to boost its key rate of interest by half or three quarters of a proportion level on Wednesday in an effort to clamp down on decades-high inflation, making it the sixth consecutive fee hike this 12 months.
When requested by reporters Tuesday what she thought of Singh’s letter, Freeland acknowledged the financial ache Canadians are feeling however famous that institutional stability is essential throughout difficult financial occasions, with the Bank of Canada’s independence enjoying an essential position in guaranteeing stability.
In his letter, Singh reaffirmed help for the Bank of Canada’s independence and acknowledged the financial institution is following its mandate by elevating rates of interest, however warned the aggressive fee hikes would harm employees.
As a possible recession looms, Singh known as on the federal authorities to do extra to guard Canadians, together with addressing “company greed” and introducing long-promised reforms to the employment insurance coverage program.
This report by The Canadian Press was first printed Oct. 25, 2022.