Federal Finance Minister Chrystia Freeland will outline Ottawa’s plan to lower inflation during a
keynote speech today (June 16) at the Empire Club in Toronto.
The speech will be used to outline the steps the federal government is taking to combat the
rising cost of living that is a top-of-mind issue with Canadian voters.
Economists expect inflation data next week to show an annual increase of 7% or more, which
would raise the likelihood that the Bank of Canada will follow the U.S. Federal Reserve with a
75 basis point interest rate increase at its next meeting in July.
Freeland will not commit to any new spending measures during her speech, instead pointing to
government programs that are already available.
Existing programs that are expected to be highlighted in the speech are an increase to
Canada’s workers benefit for low-income earners, an increase to Old Age Security payments,
and the government’s $30 billion child-care support program.
Ottawa is forecasting a deficit of $52.8 billion this fiscal year, or about 2% of gross domestic
product (GDP), down from 15% at the peak of federal pandemic spending in 2020-2021.
