Premier Doug Ford is accusing the Bank of Canada of “gouging” Canadians.
The premier’s latest attack on the bank on Thursday follows the bank’s decision to keep interest rates where they are instead of lowering them.
At the same time, Ford’s government says they will keep its promise of delivering new, detached houses in Ontario for less than half a million dollars.
The premier was in Kitchener on Thursday giving the city $14 million to help build new homes.
Ford took the opportunity to accuse the Bank of Canada of blocking efforts to build housing.
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“Yesterday’s decision by the Bank of Canada to keep these key interest rates at five per cent is not helping. In fact, high-interest rates are raising the cost of mortgages, they’re raising the cost of rent, raising the cost of living,” said Premier Ford.
“We know that our policy actions directly affect mortgage interest costs,” said Tiff Macklem, the Bank of Canada governor.
The Bank of Canada announced on Wednesday that it’s leaving interest rates where they are at five per cent to avoid setting off a new round of inflation.
“If we lower our policy interest rate too early or cut too fast we could jeopardize the progress we’ve made bringing inflation down,” said BoC Governor Macklem.
Premier Ford said he doesn’t understand what the Bank of Canada is doing.
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“They don’t care about the economy, they don’t care about people’s lives,” said Ford, “they’re gouging people, absolutely gouging people right now.”
At Queen’s Park, the opposition said Ford shouldn’t be telling the Bank of Canada what to do about a very complex issue.
“Interest rates are tough for people but inflation’s tough for people. We have to trust in the Bank of Canada and its monetary policy,” said John Fraser, the interim leader of the Ontario Liberal Party.
The government is also repeating a promise the Premier made last September in Kitchener at a Ford Fest Event.
“Stay tuned, we’re going to be building thousands and thousands of starter homes,” said Ford at the Ford Fest Event.
The promise made last September was similar to the Second World War plan that built houses across the country.
READ MORE: Ontario proposes counting retirement homes, student housing towards housing targets
Despite research showing the average Ontario home now costs around $870,000. Ford says he can build 1,600 square foot homes with finished basements, backyards, and driveways for under $500,000.
The Housing Minister says it’s going to happen.
“It is part of the modular home strategy that we’re doing, utilizing provincially owned lands to build modular factory-built housing so we’re still working on that, we’re going to get that job done,” Paul Calandra, the Housing Minister of Ontario.
However, the opposition is skeptical.
“The premier completely does not understand the housing file. He is making housing worse in this province” said Mike Schreiner the Green Party of Ontario leader.
