Quote:
Originally Posted by opendoor
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.
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Well, I still think that they eventually move the goalposts and say that they're good with a 2-3% range. I'm pretty sure I posted that somewhere here before, perhaps in this thread. There was a long time where the bank had that stated policy, so it's not a huge departure from where they were.
At the same time, their comments this morning (that I saw, but admittedly I could've missed something because I don't hand on their every word), did nothing to allay concerns about future rate hikes to come. They didn't say anything about this being the last for a while, which doesn't mean that they're increasing again next time, but the door is open for that.