LAVAL, Que. — Prime Minister Justin Trudeau says his government’s new budget will help Canadians weather the Bank of Canada’s new interest rate hike, its highest in more than 20 years.
Trudeau told reporters in the Montreal area that the recently tabled budget includes measures to help with the high cost of housing, including a tax-free savings account buyers can use to purchase a first home starting next year.
Earlier, the Bank of Canada raised its key interest rate by half a percentage point to one per cent, which is expected to affect the cost of bank loans, including variable-rate mortgages.
Trudeau says there isn’t any one thing governments can do to help with the rising cost of living, adding that his government is trying to implement measures that won’t make the problem worse.
The prime minister responded to accusations by federal Tory leadership candidate Pierre Poilievre, who said municipalities across Canada are helping to keep housing prices high by causing construction delays and adding costs.
Trudeau says his government is investing billions of dollars and partnering with cities to accelerate housing starts, adding that he is pleased other parties — such as the Conservatives — agree that doing so is the best path forward.
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