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Originally Posted by Firebot
Everyone is to blame except the Bank of Canada, according to the Bank of Canada.
These clowns where calling inflation transitory last year at this time. They left interest rates at historically low levels while this unprecedented printing of money through stimulus and cheap credit continued well past necessary and now pointing fingers to say we shouldn't have borrowed so much.
A reminder of this Bank of Canada statement in 2020 encouraging Canadians to go out and get housing on cheap credit.
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The statement about low interest rates was made in July 2020. Is 2 years not a long time? And when you consider where we were in the pandemic, it was probably a statement made to help bolster consumer confidence. At the time, it was very unlikely to see interest rates rising soon - all policy at that point was to keep enough dollars in people's pockets to keep the country running. It was nearly impossible to foresee the inflation issues we are having now back in July 2020.
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The Bank of Canada failed to act responsibly, did not heed obvious warnings when inflation was rising, and they are trying to close the gate after all the sheep are out. When inflation picks up momentum, it's incredibly hard to stop it as inflation just becomes accepted.
And the solution is a forced hard economic crash. 2023 will be a very hard year for many.
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In terms of where inflation is at right now, it's actually stopped it's momentum and we are sitting pretty stagnant for the past few months. Because the figures reported are always year over year, we will continue to see some high numbers for several months. But the fact is that CPI has only gone up from 151.3 to 152.4 from May to August 2022, less than 1%. This is annualized around 3%. From the looks of things we appear to be past the period of large inflation and things are cooling down as hoped.
Source:
https://www150.statcan.gc.ca/t1/tbl1...501%2C20220801