Interest rates

Canada’s Trudeau says we’re watching rising interest rates ‘with concern’

Canada’s Prime Minister Justin Trudeau speaks during the second plenary session of leaders at the ninth Summit of the Americas in Los Angeles, California, U.S., June 10, 2022. REUTERS/Lauren Justice

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OTTAWA, June 14 (Reuters) – Canadian Prime Minister Justin Trudeau said on Tuesday his government was watching rising interest rates “with concern” when asked about the impact of rising oil costs. loan on affordability of housing in the country.

“We know very well that housing prices are a real concern, especially for middle-class Canadians hoping to buy their first home,” he said, addressing parliament by video conference after being tested. positive for COVID-19. “We are watching interest rates with concern.”

The Bank of Canada raised rates to 1.5% from 1.0% this month and announced that more hikes are to come. Some Canadians who took out mortgages during the pandemic could see their payments jump 45% in 2024-25, according to a scenario the central bank released last week. Read more

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Reporting by Julie Gordon in Ottawa

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