Bea Bruske: Bank of Canada’s rate hike a further blow to working people

Bea Bruske, President of the Canadian Labour Congress, released the following statement in response to the Bank of Canada’s decision to raise interest rates today:

“Working people have been dealt economic blow after economic blow over the past few years. Last month, we heard from thousands of workers about how they are feeling squeezed on all fronts. Working-class families are struggling to find an affordable place to live, put food on the table while continuing to see their wages fall further behind. Adding to the pressure is the expensive and inaccessible child care that has been a longstanding burden for too many.

“It is deeply disappointing that the Bank of Canada has decided to raise interest rates once again, hurting the working people who keep Canada’s economy going. We all want inflation to fall quickly, but the Bank of Canada’s actions will cause further hardship.

“With the Bank of Canada’s policy rate now at 4.75%, workers can expect to see the cost of housing and other necessities increase further, worsening financial strain after a painful few years.

“Instead of blunt interest rate hikes, Canadians need balanced, targeted monetary policy and interventions from governments to tackle the true causes of inflation, protect working people and their families against its effects, and put in place structural reforms that better protect our economy against market-driven shocks.

“At the CLC Convention in May, thousands of workers adopted an action plan to ramp up the pressure on the issues we are currently facing. Canada’s unions will push for strong housing reform, the expansion of quality, accessible public services including health care, public transit, dental care and pharmacare, fair taxation and reining in corporate power and, most importantly, get wages growing again by strengthening access to unions, to collective bargaining and to the right to strike.”

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