With inflation cooling, politicians turn up the heat to address Canada’s affordability crisis | The Globe and Mail
September 16, 2023 | On September 6 the Bank of Canada decided to hold interest rates steady after two years of high inflation and 18 months of rising interest rates. The premiers of Ontario, British Columbia and Newfoundland and Labrador each wrote to the Bank of Canada urging it not to raise interest rates, following the critics from Justin Trudeau's caucus stating that the government has lost focus on affordability issues, especially regarding housing.
After the Bank of Canada's announcement, Finance Minister Chrystia Freeland took the unusual step of issuing a statement about the decision and announcement. Measures like strengthening the powers of the Competition Bureau and reducing the tax on rental-home construction were taken to reduce inflation.
“If the Finance Minister wants to have a big impact, she should know how to do it. You can raise taxes significantly, or you can cut spending significantly,” said Christopher Ragan, in an interview.
The article then provides more of Chris Ragan's insights on the matter and opinions of many other economists and public figures.
