Poilievre Says Cost of Government Behind Inflation as Central Bank Raises Rate

Conservative leader Pierre Poilievre holds a press conference in the foyer of the House of Commons on Parliament Hill in Ottawa on Jan. 25, 2023. (The Canadian Press/Sean Kilpatrick)

Conservative Leader Pierre Poilievre said the cost of government is driving up the cost of living for Canadians, after the Bank of Canada announced today another interest rate hike, bringing its key rate up to 4.5 percent.

“Sucker punch. That’s what the government hit Canadians with today by increasing interest rates after Trudeau and his government promised rates would stay low for long,” Poilievre said in a press conference on Jan. 25.

“They said the rates will stay low so Canadians took on hundreds of thousands of dollars of debt. And now suddenly, rates have risen by over four percentage points in a single year.”

The interest rate increase on Jan. 25 marks the eighth increase in less than a year—up by 425 basis points, or more than 16 times higher than it was a year ago, compared to the rate of 0.25 percent in January 2022.

“The cost of government is driving up the cost of living. A half trillion dollars of inflationary Trudeau deficits are bidding up the goods we buy and the interest we pay,” Poilievre said, noting that the Trudeau government has added more debt than all previous Canadian prime ministers combined.

A July 2022 study by the Fraser Institute said the Trudeau government has increased per-person debt by 35.3 percent since he took office in 2015, making it the third-highest amount since World War II. Under the Liberal government, the federal debt per Canadian rose from $34,791 to $47,070, the study said.

‘More Work to Do’

In a Jan. 25 press conference, Trudeau touted his government’s support for Canadians amid the cost-of-living crisis, including the doubling of the GST tax credit for a portion of Canadians. He also pointed to dental care program for children under 12—which is part of the deal that the Liberals agreed to in exchange for support from the NDP.

Trudeau also touted Canada’s strong economy, with historically low unemployment and the record-high participation of women.

“All of this is keeping our economy and the middle class strong and empowering more people than ever. We know there’s still more work to do to ensure that everyone is benefiting,” he said.