Premiers, finance minister welcome Bank of Canada's interest rate hold
BNN Bloomberg
Canadian politicians welcomed the Bank of Canada’s decision to hold interest rates, though one economist was skeptical that calls for a rate pause from a handful of premiers across the political spectrum had a real impact on the policy move.
On Wednesday, the Bank of Canada Governor held its benchmark rate at five per cent, as the bank works towards its goal of bringing inflation down to two per cent.
The rate hold, which was in line with most economists’ expectations, came after premiers of three provinces made the unusual decision to call for a pause to interest rate hikes, which they argued has been putting a squeeze on their constituents.
Newfoundland and Labrador Premier Andrew Furey was the third Canadian premier to call for a rate pause, following similar appeals Ontario’s Doug Ford and B.C.’s David Eby – the three politicians representing Liberal, Progressive Conservative and New Democratic governments, respectively.
