Western Standard - January 26, 2023


Poilievre condemns Trudeau for going back on keeping interest rates low


Episode Stats

Length

1 minute

Words per Minute

188.33333

Word Count

339

Sentence Count

20


Summary

Inflationary deficits are driving up inflation and interest rates. The Governor of the Bank of Canada has said these deficits are even driving the higher costs. One mother told the CBC that she signed in to a 1.9% mortgage variable rate because she believed the government that rates would be low for long. And now she says, "I punched myself on that decision."


Transcript

00:00:00.000 Future governments are going to have to carry that debt, the servicing costs on that are going to be very high.
00:00:06.000 Sorry?
00:00:07.000 The servicing costs on the debt that you're going to have to carry, that you're adding to now, right?
00:00:11.000 Interest rates are at historic lows, Glenn.
00:00:14.000 Okay, but it's still a lot of money.
00:00:15.000 No, no, no, no.
00:00:16.000 It's still a lot of money.
00:00:17.000 No, no.
00:00:18.000 And you don't know where, okay, so, but how are you going to pay for that?
00:00:21.000 How are you going to pay for those costs in future years?
00:00:24.000 Are you going to increase taxes or are you going to cut programs?
00:00:28.000 Against that background, we are being unusually clear that interest rates are going to be low for a long time.
00:00:36.000 The policy rate of the Bank of Canada, which is at the effect of lower bound, is currently at 0.25.
00:00:42.000 The Conservatives keep raising fear about a potential 1% increase, which would represent a 500% increase if it were to shoot to 1.25 overnight.
00:00:52.000 In any event, the Bank of Canada, during the testimony before this committee, has explained that there is no plan to do that for the next potentially few years.
00:01:00.000 And that in any event, the conditions that would justify such a radical increase would essentially tell a story that the economy is doing very well.
00:01:08.000 Well, Canadians were hit with another interest rate uppercut today after inflationary deficits by this Liberal government are driving up inflation and interest rates.
00:01:21.000 The Governor of the Bank of Canada has even said these deficits are driving the higher costs.
00:01:25.000 One mother told the CBC that she signed in to a 1.9% mortgage variable rate because she believed the government that rates would be low for long.
00:01:34.000 And now she says, I punched myself on that decision. Why did I listen to these people?
00:01:40.000 Mr. Speaker, how is this mother going to pay the extra $1,000 a month in mortgage payments that they're putting on her back?
00:01:47.000 Hear, hear!