Quote:
Originally Posted by AltaGuy
I think you are right about this looming tradeoff, but wrong about who the Canadian government will ultimately be protecting. I think the government will be giving inflation a lot of room to run in the hopes that it simply slows of its own accord before cratering housing prices.
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Potentially, but their actions on raising rates faster and by full half points aren't suggesting that
The risk is the longer inflation goes on, that higher rates need to keep going.
Almost better to shock the system and stop it (In theory) and then start slowly lowering rates again