Quote:
Originally Posted by Firebot
England and Australia blinked first earlier in the past month, and it looks like Canada is doing the same. I think we are likely to see our CPI inflation target raised in the near future and policies accept that moderate inflation will have to be tolerated (with subsequent consequences)
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What a weird comparison. The UK had to engage in emergency Quantitative Easing to overcome disastrous government policy that threatened pension funds' liquidity. Meanwhile Canada raised rates by
only 50 points, which still has us with some of the highest rates in the industrialized world (while having among the lowest inflation). Yeah, totally the same thing.
Just to put Canada and the inflation/interest rates into context, here are other major industrialized nations with their inflation rate minus their interest rate (lower number is better in terms of likelihood of handling inflation):
Germany:
8.75 points
UK:
7.85 points
Italy:
7.65 points
Spain:
7.65 points
United States:
4.95 points
Australia:
4.7 points
France:
4.35 points
Singapore:
3.61 points
Canada:
3.15 points
Japan:
3.1 points
South Korea:
3 points
Switzerland:
2.8 points