On the eve of the announcement of the Bank of Canada’s key rate, many economists fear that another hike will slow the Canadian economy even further.
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If there is a rate increase on Wednesday, it would be the eighth in less than a year.
In this context, the Federal Finance Minister, Chrystia Freeland, promises to remain cautious in her next budget, expected in March or April.
Ms. Freeland was in Hamilton on Tuesday as part of a retreat with Prime Minister Justin Trudeau’s cabinet, where several economists presented their predictions of a significant slowdown in the Canadian economy.
“It has several interest rate effects that we haven’t seen yet,” says Carolyn Wilkins of Princeton University.
“Especially since in Canada, we have a population that is so indebted that each increase in the interest rate is very much felt,” she explains.
Pablo Rodriguez, Minister of Canadian Heritage, ensures that the government makes the economy its priority and understands the reality of the Canadian population.
“Before being ministers, we are human beings,” he explains. We put gas in our tank, we buy cereals, we know what is happening, we are working on it.
