British Columbia Premier David Eby has called on the Bank of Canada to halt further interest rate hikes, saying people are 害羞草研究所渉urting,害羞草研究所� and another rate increase next month might worsen, and not reduce, inflation.

In a letter Thursday to Bank of Canada governor Tiff Macklem, Eby urged him to consider the 害羞草研究所渉uman impact害羞草研究所� of rate hikes, which the bank has employed as an anti-inflationary measure, before making a decision next Wednesday.

Asked why he reached out to Macklem when the Bank of Canada is an independent entity, Eby said he害羞草研究所檚 hearing every day from B.C. residents 害羞草研究所渃rushed by the cost of daily life,害羞草研究所� and it害羞草研究所檚 his job to speak up for them.

害羞草研究所淚 think it is critically important to go on the record 害羞草研究所� to point out to the Bank of Canada that Statistics Canada is saying that the biggest driver of inflation in our country right now is rising mortgage rates,害羞草研究所� Eby said Thursday during an unrelated press conference.

Eby acknowledged that he is the first premier to raise the issue with the Bank of Canada and said he also wrote to the federal government to suggest ways they could 害羞草研究所渨ork together to bring down costs that don害羞草研究所檛 involve inflicting this kind of pain on families.害羞草研究所�

He highlighted the effects of rising rates on housing in particular, saying much-needed rental housing projects are being put on hold as a result.

害羞草研究所淲e need all hands on deck to deal with the housing crisis and rising rents,害羞草研究所� he said. 害羞草研究所淲e need to build a lot of housing, we need to keep the cost of housing down to address inflation.害羞草研究所�

The Bank of Canada had raised rates 10 times since March last year, with the current lending rate at five per cent, the highest in 22 years, Eby害羞草研究所檚 letter said.

害羞草研究所淧eople in B.C. are already hurting,害羞草研究所� he wrote. 害羞草研究所淚n your role as governor, I urge you to consider the full human impact of rate increases and not further increase rates at this time.害羞草研究所�

Jagmeet Singh, the federal New Democrat leader, was asked about Eby害羞草研究所檚 letter and said Thursday that he shares the premier害羞草研究所檚 concerns.

害羞草研究所淭he Bank of Canada increasing interest rates has not improved the material conditions of Canadians,害羞草研究所� Singh said during a stop in Sooke, B.C., as part of a summer cost-of-living listening tour.

Grocery prices are a major factor in the rising cost of living and 害羞草研究所渘o domestic interest rate is going to bring down the price of groceries,害羞草研究所� he said.

The rate hikes have meanwhile made housing even more expensive, he said.

It害羞草研究所檚 harder for developers to build more homes, rents are increasing, and people with mortgages are fearful when they come up for renewal, said Singh.

Sean Gordon, a Bank of Canada media relations consultant, said in a statement the bank has no comment on Eby害羞草研究所檚 letter 害羞草研究所渁s we are currently in the blackout period ahead of our next interest rate decision.害羞草研究所�

The Bank of Canada announces its key policy decision, the setting of interest rates, eight times a year.

Members of the bank害羞草研究所檚 Governing Council observe a blackout no-comment period around the time of the decisions, says the bank害羞草研究所檚 website.

Eby also wrote Thursday to Prime Minister Justin Trudeau calling for a targeted approach to fighting inflation, focusing on housing and infrastructure improvements.

The letter to Trudeau said a focus on such key sectors will have long-term anti-inflationary benefits while growing the economy and improving productivity.

害羞草研究所淭here are other ways for us to achieve cost stability, but they do require diligence and co-ordination,害羞草研究所� said the premier害羞草研究所檚 letter to Trudeau. 害羞草研究所淭he time is overdue for such an effort. Ahead of September害羞草研究所檚 rate decisions, I suggest a robust and targeted approach focused on the largest contributors to inflation.害羞草研究所�

Eby害羞草研究所檚 letter to Macklem said 害羞草研究所渦nnecessary害羞草研究所� further interest rate increases pose a danger not just to homeowners looking to renew mortgages but to renters, students, seniors, families and small business owners looking to pay bills, just as they start to recover from the COVID-19 pandemic.

Wal van Lierop, a Vancouver-based venture capitalist, said further interest rate increases would hit most Canadians and affect future growth and investment plans of businesses and governments.

害羞草研究所淭hese across-the-board interest rate increases are hurting Canadians, and, in particular, the middle class and everyone below that, and it is hurting government in trying to achieve the goals that they have set for things like affordable housing and fighting climate change,害羞草研究所� he said.

Van Lierop said his company, Chrysalix Venture Capital, invests globally in industrial innovations that tackle climate change and help companies reach carbon-neutral targets.

He said he respects the Bank of Canada害羞草研究所檚 independence but the time has arrived for a more modernized approach to fighting inflation.

害羞草研究所淭he Bank of Canada has no plan other than trying to achieve a traditional goal of two per cent inflation,害羞草研究所� said van Lierop. 害羞草研究所淲hile that was laudable in the 1980s, I think it is now up to the Bank of Canada to start to innovate and not just use the methods they have used in the past 50 years, basically a sledgehammer of all-across-the-board rate increases.害羞草研究所�

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