The interest rate has been increased for the 10th time. Its objective is to reduce the cost to the citizens. In other words, its purpose is to squeeze the purchasing power of citizens.
And thereby bring inflation down to 2% by the end of this year or early next year.
Inflation eased to 3.4% in May. And only if the Bank of Canada can reduce it by 1.4, it will be able to reach its desired target.
But after achieving this target, there is no guidance as to when the interest rate will start to decrease.
Citizens may have to bear the burden of this extra interest for a long time.
Another thing is that there is no coordination between the federal government and the Bank of Canada.
The objective of the Bank of Canada is to reduce spending. But every time the Bank of Canada raises interest rates to cut spending, the federal government increases its spending in various sectors. Especially with the federal government donating millions of dollars to embattled Ukraine days later.
Not only that, the federal government is increasing its spending in various sectors.
As a result, the Bank of Canada is failing to reach its desired target or it is taking longer than expected to reach the target.
If this continues, the Bank of Canada may be forced to raise interest rates again.
Homebuyers are suffering the most as interest rates continue to rise.
Today, a home owner who rents out the basement responds, as things stand, we have to live in the basement and rent out the upper part of our house to meet living expenses. Because it is the same as selling the house and renting an apartment.
Rents have gone up beyond affordability everywhere.
The federal government has no problem with this. They don’t have time to think about who died and who lived.
A Deputy Prime Minister is made who is also the Finance Minister. I still don’t understand what the job of the Deputy Prime Minister is actually!!
There are so many professional, experienced people who are experienced and well-versed in the field of economics, but a person who has no experience in this field has been given the responsibility of Finance Minister. Is managing a country’s economy the same thing as having a major in economics?
What is the finance minister’s plan for those struggling with mortgage interest?
Does he not see the reactions of citizens on social media? What are the citizens saying about him, what are the reactions about him? Does he see them?
Is it right to let the reaction of citizens go to the point where they start thinking change is inevitable?
