Rate hikes: The PQ asks Legault to fight back

Rate hikes: The PQ asks Legault to fight back

The Parti Québécois wants the government to “formally oppose” a new rate hike by the Bank of Canada, which has been taking place “in a brutal and uninterrupted manner” since March 2022.

• Also read: From 1ah May 2023: Quebec raises minimum wage to $15.25

• Also read: Quebec Region: Business leaders less optimistic about 2023

• Also read: The worst inflation in 40 years will leave its mark

“Taking care of the economy doesn’t mean handing the keys to our economic health to the federal government, no questions asked; Even if it is a federal jurisdiction, the Quebec government must take action. It now has a duty to act decisively on behalf of Quebec to prevent Quebec families from being left on the streets because of the Bank of Canada’s negligence,” said PQ leader Paul St-Pierre. Plamondon in a statement on Thursday.

He believes another rate hike on Jan. 25 would be “disastrous” for Quebec families.

“The main justification for further interest rate hikes would be that inflation is not coming down enough. However, all signals point in the opposite direction. In fact, according to economist Pierre Fortin, inflation has calmed down significantly since the summer and continued to stabilize in the autumn,” according to the Parti Québécois (PQ).

For the head of the PQ, the Bank of Canada looks for “a Canadian cure for a Canadian problem before looking for a Quebec cure adjusted to Quebec inflation.” He said Quebec would have everything to gain by being in control of its monetary policy, which is “a real problem”.

“Quebec needs to be able to steer its monetary policy according to its economic realities and its own interests, as Pan-Canadian policies are rarely adjusted to account for differences in the economic context of individual provinces. […] Until then, we must not give the federal government all these powers without holding accountability and protecting our interests,” added Paul St-Pierre Plamondon.