Dear John,
As you probably heard, the inflation rate in Canada recently hit a 30-year high, prompting the Bank of Canada to raise its policy interest rate in April and again in June.
And more rate hikes possible before the end of the year!
A new Fraser Institute essay out today finds that these rate hikes will also increase government interest costs. And with the federal government continuing to borrow money to fund high levels of spending, the cost of servicing Ottawa’s growing debt is poised to increase even further.
A second essay also released today finds notes the similarities between today’s federal fiscal situation and the mid-1990s. Back then, interest costs consumed one of every three dollars of revenue, and the government enacted major reforms — including spending reductions — to help dramatically reduce the federal debt.
Check out both essays here [[link removed]], and help us spread the word on social media!
Sincerely,
Niels Veldhuis
President
The Fraser Institute
STAY UP TO DATE
SUPPORT THE FRASER INSTITUTE
The Fraser Institute has been ranked the #1 think tank in Canada, and the 14th best think tank out of more than 8,200 around the world! We keep Canadians – and decision-makers! – informed.
But we are only as strong as our supporters. We do not accept government grants or payments for research - we depend on individuals like you to continue our good work! We are a charity - your donation entitles you to a generous tax credit at tax time!
Contact Us [[link removed]] Privacy Policy [[link removed]] Unsubscribe [link removed] The Fraser Institute's mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. Email is one of the best tools we have to accomplish these goals. If you no longer wish to receive e-mail updates from us, click here to unsubscribe [link removed].
Fraser Institute 4th Floor, 1770 Burrard Street Vancouver, BC V6J 3G7
