The latest interest rate hike will see “a lot of people struggling,” Finance Minister Chrystia Freeland said yesterday. The Bank of Canada raised its charge on interbank loans from 4.5 to 4.75 percent. The rate was 1.5 percent a year ago.
“I know a lot of people are struggling,” Freeland told the Senate national finance committee. “I know the increase in interest rates, I know a lot of people saw that and said, ‘Oh, what am I going to do with my mortgage?’”
The rate adjustment was the ninth increase in the 15 months since March 2, 2022. The central bank scheduled its next rate announcement for July 12.
“This is a very difficult time for Canadians,” Minister Freeland told reporters immediately following the Bank of Canada announcement. “It is very difficult for middle class Canadians.”