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Old 04-23-2021, 09:09 PM   #7
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Join Date: Dec 2006
Location: Calgary, Alberta

Originally Posted by DoubleK View Post
They were absolutely fawning over the BoC on Bloomberg last night. They really liked that they signaled tapering the bond purchasing and then leading to rate hikes.
I do feel like the BoC has done a good job through this. They did give a lot of liquidity to grease the wheels and reducing the bond buying should help ease inflation fears.

Originally Posted by DownhillGoat View Post
I don't know if it's a valid comparison but Japan has been at 0% for over 20 years.

Are there no options (even outside of the BoC) to target specific areas? I mean they brought in a luxury tax, why not institute a 10% tax to any home purchased over 1M, or any homes in a "hot" area. Obviously that's one overly-simplistic perhaps not well thought out example, but there should be some other regional way to solve that.

Interest rate changes (or any policy) to deal with areas consisting less than 20% (likely a much lower % effected by home prices) of the country's population while effecting 100% of it seems like pure lunacy.
I think there are other things that they could consider on a regional basis, but frankly those are political decisions (tax policy, for example) and that gets messy. With the BoC they make their decisions and are at an arms-length from the government.
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