Rate increases not the news Canadians wanted to hear: Trudeau

Canadians also aren't alone in experiencing mounting inflation levels and elevated interest rates, Prime Minister says

Rate increases not the news Canadians wanted to hear: Trudeau

Prime Minister Justin Trudeau has acknowledged that the Bank of Canada’s latest policy decision to raise its benchmark interest rate to a 22-year high of 5% will have come as unwelcome news to many Canadians.

“This is not the news that any Canadian wanted to receive this morning,” Trudeau said at the recently concluded NATO Leaders’ Summit in Lithuania, as reported by The Globe and Mail.

At the same time, Trudeau said that Canadians aren’t alone in experiencing the multifaceted pressures of mounting inflation levels and elevated interest rates.

“I’ve had conversations with leaders here in Europe and around the world and the cost of living is a real challenge,” Trudeau said. “People around the world are facing significant challenges.”

To allay some of the impacts of higher living costs, Trudeau said that the federal government has been “stepping up with targeted support for people who most need it at this moment.” Among the relief measures include grocery rebates for approximately 11 million Canadians, carbon cost rebates for Canadians, and a one-time $500 tranche from the Canada Housing Benefit.

“We will continue to be there for Canadians through these difficult times,” Trudeau assured.

Conservative Party and Official Opposition leader Pierre Poilievre blasted the Trudeau administration anew, saying that untrammelled government spending has directly aggravated inflation rates.

“After eight years of Trudeau, life costs more,” Poilievre said in Penticton, BC.

“The culprit is Justin Trudeau… [He] promised Canadians that they didn’t have to worry about higher interest rates. His policies forced the Bank of Canada to deliver an uppercut to Canadian families who are drowning in debt.”