Quote:
Originally Posted by blankall
My major gripe is that you had the BoC telling people that interest rates would be low for a while, in a situation where it was very obvious that things would be unstable:
https://www.bnnbloomberg.ca/interest...klem-1.1465901
They encouraged people to buy homes to simulate the economy during COVID. That's fine, but encouraging people, many first time buyers, to overly extend themselves or lock into variable rates seems almost criminal. |
Well the issue is that things change. I don't know what date that article has on it, but was there a war in Ukraine? Could they have known that inflation was going to spike at that time, or is this all just "easy to see" because we know the outcome?
So, things changed and the central banks (around the world, I'll note) had to change their strategy as a result. Even if you want to hammer them for saying things like this or calling inflation transitory, I'm not sure we would be in a good position if they basically said "well, we said that we'd keep rates low, so we're sticking at 0.25% and we'll just let people get wrecked by infaltion". How would that be at all a responsible tactic?