Quote:
Originally Posted by Monahammer
https://www.advisor.ca/news/economic...aid%20Shenfeld.
CIBC and other banks are widely reporting that they expect the central bank to pause at the current key rate for a while, but hold it through to 2024. Now, they're opinions might be as valid as Yoho's, as they have been quite wrong about this multiple times in the last 2 years.
Looking at macro indicators though, I think it's a safe assumption. Canada's inflation relative to peers is tapering off quite well, reports are indicating that most of the inflationary pressure is due to external economic factors, and the interest rate increases have tempered some of the heat in the hottest housing markets. If we hit a sharp economic downturn, they're going to want to reduce rates really quickly again. In order to do that, they'll need rates at a reasonable level to then cut into for stimulus. That all means likely hold until the economy looks really bad, then cut from there. But I'm less knowledgeable than CIBC. |
Question - If rates hold while others (namely the US) continues to rise, or we lower our rates ahead of others, that will likely cause the dollar to tumble, which will increase the cost of many goods and cause... inflation, no?