Mr. Speaker, my question is for the Minister of Finance.
Today the bank increased its lending rate by 34 basis points to what is now 6.61 per cent. When the present Minister of Finance was in opposition he often insisted on the lowering of interest rates because high rates retard economic growth, reduce employment and tax revenue. We know that they also raise the cost of servicing the debt. The two effects combined will result in a larger deficit.
Will the minister now consider further spending cuts that he knows are the only way to prevent increasing the deficit and the
possible disastrous dumping of Canadian bonds by investors, which in turn will lead to even higher interest rates?