The Bank of Canada's Interest Rate Pause Is Not Enough

As a resident of Canada struggling to make ends meet, I find the Bank of Canada’s recent decision to pause raising interest rates to be of little help. Their decision has certainly made waves in the news and may be viewed as a sigh of relief for some, but it means very little to those who still can’t afford to live.

While the Bank of Canada’s decision may be beneficial for upper-class Canadians, it doesn’t take into account the struggles of the average citizen. For those who are already struggling to make ends meet, the Bank’s actions don’t offer any immediate or actual relief. The fact remains that many Canadians are still struggling and the decision to pause interest rates is nothing more than a symbolic gesture.

A recent Angus Reid study concludes, nearly half of Canadians reported feeling worse off financially than they did in 2022.

While savings may be a good thing, it doesn’t help those who are already living paycheck to paycheck. Let’s not dismiss that to even start saving, one must be earning a surplus. Most Canadians can’t get the necessary resources to address their immediate needs, let alone save.

Furthermore, high mortgage rates make it difficult for many Canadians to own a home. Even with benchmark prices falling, homeownership remains out of reach for many, making it even more challenging to maintain a sense of stability and security. Coupled with the rising cost of living, a lack of affordable rentals and job opportunities, this leaves many Canadians feeling hopeless.

For those who are struggling, it’s not just about interest rates or savings. It’s about the ability to provide for their families and to have access to the resources they need to survive. Until the Bank of Canada takes into account the struggles of everyday Canadians, their actions do nothing for the regular man. While the central bank may believe that halting interest rates will help boost the economy, it’s clear that it’s not enough to help those who are struggling the most.

The Bank of Canada’s decision to pause raising interest rates may be beneficial for some Canadians, it doesn’t address the obstacles of those who are already struggling to make ends meet. We need affordable housing, a living wage, and job opportunities that allow us to support ourselves and our families.

Until the Bank takes a more holistic approach to addressing the needs of everyday Canadians, their actions will continue to fall short, leaving many of us struggling to put food on the table and keep a roof over our heads.