Canadian Labour Congress

Canadian Labour Congress

September 06, 2005 16:38 ET

Labour to Bank of Canada: Hold Off Any Increase

Attention: Assignment Editor, Business/Financial Editor, City Editor, News Editor, Government/Political Affairs Editor OTTAWA--(CCNMatthews - Sept. 6, 2005) - The Canadian Labour Congress today called on the Bank of Canada to hold off on any possible interest rate increase until it is clear that the Canadian economy has weathered the impact of sharply higher energy prices.

According to leading Canadian economist Andrew Jackson: "Soaring gasoline and natural gas prices will have a major negative impact on family budgets and household spending, likely resulting in job losses in sectors like tourism and retail trade. At the same time, the new boost to the Canadian dollar from higher oil and gas prices is making adjustment for much of the manufacturing sector even more difficult."

"It is likely that energy prices will remain sharply higher than even a few weeks ago, even in a best-case scenario for dealing with hurricane damage. With core inflation in Canada very low at just 1.4%, and with a softening job market, the best thing for the Bank of Canada to do now is to wait and see," explains Jackson who is also Director of the Social and Economic Policy Department of the Canadian Labour Congress.

The Canadian Labour Congress, the national voice of the labour movement, represents 3 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 137 district labour councils. Web site:

Andrew Jackson, economist, 613-526-7445
Jean Wolff, 613-526-7431 and 613-878-6040
Jeff Atkinson, 613-526-7425 and 613-863-1413 /For further information: Jean Wolff, 613-526-7431 and 613-878-6040
Andrew Jackson, economist, 613-526-7445/ IN: ECONOMY, FINANCE, LABOUR, POLITICS, SOCIAL

Contact Information

  • Jeff Atkinson, Canadian Labour Congress
    Primary Phone: 613-526-7425
    Secondary Phone: 613-863-1413