Quote:
Originally Posted by calgarygeologist
I'm not sure what good comes out of removing mortgage interest from CPI other than turning a blind eye on a bad situation.
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It’s not Turing a blind eye though. It’s setting policy based on the things the policy rate can control. If mortgage interest is driving 90% of inflation you know it’s transitory and you wouldn’t raise or lower interest rates to fight it.
The goal is avoiding persistent high inflation.