Quote:
Originally Posted by Slava
The release was as expected. Also, the largest contributor is mortgage interest...alas the rate increases are pushing inflation higher at this point.
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Those affects though will predictably decline as the delta between todays rate and last years rate drops.
It’s also sort of a good area for inflation to be occurring in as that money is directly not completing for consumer goods and services which means reducing demand which reduces growth which reduces wage pressures which is the goal of these changes.
It’s almost a measure of success.
I don’t know what happens in the world of the banks though when the banks get this excess money. I suppose it flows back to Bond Holders which then makes its way back into the economy?? So maybe then that component is relatively neutral and it’s just making money more expensive slows growth.