Quote:
Originally Posted by Azure
Why is it murky? If outside influences are a major driver with inflation, then what the BoC has done (repeated & quick interest rate increases), are not going to necessarily lower inflation.
I'm not saying their job is easy. I'm just saying that if there is any truth to this report, then the BoC is WAY to hasty with the rate increases.
|
It’s not entirely outside influences though. When rates rise it makes it less attractive for commodity storage, which means more supply hits the market and prices decrease. I just say it’s murky because that’s more impactful south of the border.
I also think that the rate increases have driven real estate down in two major markets in Canada. That’s going to have a dampening effect on demand as well. So, the BoC is making decisions they can control and inflation has declined significantly. It’s because of that they can credibly talk about pausing the rate hikes.