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N.L. premier asks Bank of Canada to stop raising interest rate

Andrew Furey has joined the premiers of Ontario and British Columbia in asking the Bank of Canada to pause interest rate hikes.

Next decision on interest rates expected on Wednesday

A man is wearing a suit and a yellow tie.
Premier Andrew Furey is calling on the Bank of Canada to avoid further interest rate hikes. (Ted Dillon/CBC)

Newfoundland and Labrador Premier Andrew Furey has joined the premiers of Ontario and British Columbia in asking the Bank of Canada to stop hiking interest rates.

Furey posted his letter addressed to Bank of Canada governor Tiff Macklem on social media Tuesday evening. In it, he asks the governor to "more fully consider the negative impacts" of continued interest rate hikes on Canadians. 

The Bank of Canada is expected to make its next decision on interest rates on Wednesday.

"These are challenging times for Newfoundlanders and Labradorians, and indeed Canadians, as many struggle to make ends meet given increasing costs of living and the increasing need for affordable housing," Furey wrote. "The continued raising of interest rates from the Bank of Canada is adding to these growing pressures."

Furey cited the impact on homeowners, those wanting to buy their first homes, and those looking to rent.

The interest rate sits at five per cent heading into Wednesday, the highest it has been since March 2001. 

A man in suit speaks while raising his hand and sitting on a chair.
Bank of Canada governor Tiff Macklem delivers his end-of-the-year speech in Vancouver on Dec. 12. (Ben Nelms/CBC)

Macklem has said he wouldn't lower interest rates until inflation was down to two per cent — a target that has yet to be met. 

Ontario Premier Doug Ford and British Columbia Premier David Eby each sent letters in the past week, asking Macklem to consider avoiding another hike. All three premiers have asked Macklem to consider alternative ways to tackle inflation.

"Now is the time for innovative solutions that will ease the burden on Canadians, not add to it," Furey wrote.

"I urge you to work with Canada's premiers to discuss impacts the current approach is having on Canadians and possible ways forward that provide some relief to citizens while building the foundation for a stronger economy."

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