Quote:
Originally Posted by Slava
^If the BoC had stopped raising rates, we'd be at about 2-2.5% inflation I think and very close to their desired figure. That's specifically due to the increased shelter figure.
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It'll be interesting to see if they stick to their 2% target while mortgage interest inflation is so high. Because after the basket re-weighting they just did, mortgage interest inflation alone is adding 1.1-1.2 percentage points to the headline number and about 1.5 points to the core number. So it'll basically be impossible to hit 2% overall without pushing everything else towards deflation. And continuing to raise rates will just exacerbate that.