People in Calgary and across Canada are expected to feel the effects of the Bank of Canada’s move to increase its key interest rate by a full percentage point to 2.5 per cent in a dramatic effort to cool inflation.
“The Canadian economy is overheated. There are shortages of workers and of many goods and services. Demand needs to slow so supply can catch up and price pressures ease,” said Bank of Canada Governor Tiff Macklem.
With inflation standing at 7.7 per cent and expected to hit eight per cent before the end of the year, the impact will be felt by consumers, businesses and homeowners.Those holding a $300,000 mortgage should expect to see an increase of $160.48 a month. Sixty-eight per cent of Albertans were already concerned about increasing interest rates, according to accounting firm MNP’s consumer debt index survey from last month.Donna Carson with MNP in Calgary said it’s something more people may need to consider.
Conservative MP Michelle Rempel Garner for Calgary Nose Hill is calling on Ottawa to come up with a plan to address issues that have led to inflation, like the global food shortage, rising fuel costs and housing affordability.