Public debt charges jumped nearly $2.3 billion with the latest interest rate hike by Canada’s central bank, according to estimates from a report by the Parliamentary Budget Office (PBO).
In September 2020, the PBO’s “Economic and Fiscal Outlook” forecast that a 1 percentage point increase in interest rate by the Bank of Canada (BoC) would raise public debt charges to $4.5 billion in 2021–22.
