Ontario wants the federal government to lower interest rates in an effort to curb the soaring Canadian loonie.
  
The current federal interest-rate policy is "designed to cater to a super-heated petro-dollar" originating with Alberta's oil boom, Premier Dalton McGuinty said.
  
McGuinty said the Canadian dollar, which cracked the $1.10 US mark on Wednesday, is hurting Ontario's economy much more so than it is Western Canada.
  
He said Ontario would benefit from a rate curb. "From an Ontario market, we would benefit from an interest rate reduction, something that would make the Canadian dollar less attractive on the international market," McGuinty said.

McGuinty also advised Ontario retailers to make sure the higher dollar is translating into lower prices at home.
  
There's no doubt people will shop across the border for bargains, he said, so prices in Ontario must be competitive and reflect the increased purchasing power of the soaring currency.

But the minister in charge of the LCBO, David Caplan, said oenophiles are going to have to wait a while before they see lower prices on California wines.

"The LCBO buys its products 12 months in advance," he said. "It will take some time, but those savings will be passed on to consumers."

McGuinty promised some provincial action on the impact of the Canadian dollar. He said he'll outline those measures in a speech from the throne when the legislature resumes on Nov. 29. 

With files from the Canadian Press