Letters to The Province, July 19, 2022: Interest rate hikes hitting everyone hard

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“For every action there is an equal and opposite reaction.” This quote from Sir Isaac Newton may have to be modified and the “opposite” increased three-fold. We are now hearing that, yes, the recent interest rate increase will and is slowing down spending, which may or may not reduce inflation and prices.

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And apparently another increase is coming this year?

But we do know for certain that these two bank rate increases will have the following effects:

1. All existing monthly variable-rate mortgages will increase big time. The example they gave was a $700,000-plus mortgage will increase your payments around $340 each and every month. That, by the way, is net dollars, so most people will have to earn $500 or more gross monthly to get $340. Many people will lose the equity in their homes, or lose them altogether. How on earth is that a good thing?

2. Existing home rentals will tighten as the normal transition of renters moving on to purchase homes will certainly slow or stop. This means that rental rates will increase big time due to supply and demand. Hey, mom and dad, little Johnny ain’t moving out for a long time!

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3. Sub-contractors’ income will reduce because fewer people will be spending on renovations, so those workers will suffer with no or certainly reduced income. Again, that instant action is a good thing?

4. Other industry workers will be cut back due to lack of customers.

5. Governments will be asked for free money for citizens affected, so our trillion-dollar deficit will balloon out of control. Oh well, Prime Minister Justin Trudeau said, “The budget will balance itself!”

So, while I don’t know the answer to raising rates, I do wonder if the Bank of Canada even sought out alternatives. Pierre Poilievre wants to fire the Bank of Canada president. I wonder why?

Bill Davis, New Westminster

Good riddance to the ‘Royal City’

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Outgoing New Westminster Mayor Jonathan Cote, who proposed removing “Royal City” as a moniker, should be lauded for a progressive move.

Aside from the fact that the city was named in honour of a City of London enclave, there is nothing about New Westminster that rings “Royal City”.

It is best to leave the Brits the painful task of clinging to a past they longingly embrace, including the soap opera-worthy royals and their embarrassing scandals.

For those who pine for the past glory of Imperial Britain, one need only look at what is happening in Ukraine. Just imagine Ukraine as then Canada and the Ukrainians as the Indigenous tribes being slaughtered mercilessly just like what the Russians are doing. Or how about the Incas being exterminated by the Spaniards, for that is essentially what Putin is doing.

If that is what “Royal City” means, then good riddance.

Norman Ostonal, New Westminster

Letters to the editor should be sent to [email protected]. 

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