The real question is how high do interests rates need to go in order to slow/stop inflation, and whether this triggers the largest housing crash in humanities history.
From 1975-1990 the BOC 5 year fixed posted rate did not fall below 10%. It wasn't until 1995 that BOC 5 year rates hit 8.5% and continued on a trend down.
https://www.ratehub.ca/5-year-fixed-...e-rate-history
However, almost anyone who has lived through the Canadian housing boom of the last 25 years didn't own a home during high interest timeframes. (Or are almost in retirement, etc)
How the Fed can balance inflation vs the increased debt load Canadians hold especially in their homes will be very interesting over the next 18 months.
I use to think the Fed could never raise interests rate very much due to the immediate destruction of the highly leveraged Canadian households. However, if inflation keeps rising they are out of tools in their toolboxes
A lot of people may get an economics 101 lesson before the end of 2023.