Doug Ford Urges Bank of Canada to Lower Interest Rates

Ontario Premier Doug Ford is putting pressure on the Bank of Canada to cut interest rates once again. On Tuesday, he expressed his thoughts on social media, arguing that reducing the key lending rate would be the best way to help the economy and provide relief for people struggling with high mortgage rates.

Ford emphasized that many families in Ontario and across Canada need assistance, stating, «The best way to boost the economy and give people stuck with sky-high mortgage rates some relief is for the Bank of Canada to cut interest rates again tomorrow.» His request for a 25 basis point reduction would bring the rate down to 4.5 percent.

Despite Ford’s appeals, experts suggest that even if the rate is cut, it might not quickly revive the slowing real estate market. Since the Bank of Canada started increasing rates in March 2022, the market has seen a considerable slowdown. The rates soared over 10 occasions, peaking at a 22-year high.

At a news conference in Kitchener, Ford pointed out that Bank of Canada Governor Tiff Macklem needs to lower rates further to foster new home construction in Ontario. Recently, a report revealed that new condo sales in the Greater Toronto and Hamilton Area fell to their lowest in 27 years due to a significant drop in construction starts.

Ford remarked, “If we get the Bank of Canada to knock rates down to around three percent, they will pop up like mushrooms everywhere.” He believes cutting rates is essential in the fight to keep the economy strong.

The Bank of Canada previously indicated that it was necessary to elevate interest rates due to inflation peaks, which reached 8.1 percent following the pandemic. However, recent figures from Statistics Canada showed the inflation rate dipped to 2.7 percent in June.

In addition, Ontario’s unemployment rate increased to 6.4 percent last month, facing pressure to address the province’s housing crisis. Ford’s administration has a goal of constructing 1.5 million new homes by 2031, but the current housing starts are significantly below the needed levels to achieve that target.