Trudeau government’s fiscal ineptitude leading cause of high inflation and higher interest rates

Despite the Bank of Canada’s calls for assistance, the Trudeau government continues to add fuel to the fire.

Whereas the central bank is trying to contain demand to tame inflation, the federal government has announced that the cumulative deficit for the next five years will be $35.9 billion higher than projected in the last budget.

Unfortunately, the past few years have shown us the effect that government spending can have on inflation and, thus, on the interest rate increases required to fight that inflation.

If it hadn’t been for the excessive government spending of recent years, interest rates today would be two percentage points lower than they are, according to a recent Scotiabank study. The policy interest rate would, therefore, not be five percent but three percent, with this increase affecting all of our loans.

Photo by Stormseeker

Photo by Stormseeker

To really understand what two additional percentage points of interest........

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