National Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
The run-up of interest rates since March, led by the Bank of Canada in a bid to tame inflation, represents a substantial economic shock, one that is now pushing the country towards a recession. The bank’s overnight, or policy, interest rate is now at 4.25 percentage points, up from 0.25 per cent in February.
As the figure below shows, today’s higher rates are still low in relative terms. Back in the 1980s, interest rates soared due to central bank efforts to stamp out 1970s inflation. Much of the Bank of Canada’s current effort stems from fears of reliving the 1970’s and 1980’s experience with inflation and interest rates.Source: Bank of Canada, Interest rates posted for selected products by the major chartered banks, https://www.bankofcanada.
Interestingly, the Bank of Canada was blasé about soaring real estate prices and cryptocurrencies in 2021. Only when consumer price inflation reared its head in 2022 did the Bank spring into action, even though by its own admission two-thirds of inflation is due to factors outside of Canada’s borders, most notably the price of oil in the wake of Russia’s invasion of Ukraine and supply chain backlogs due to COVID-19.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Murray Sinclair to help AFN with conflict resolution after ‘turmoil’: national chief | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Alberta premier rejects suggestion she erred with bill giving her sweeping powers | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Auditor general probes COVID-19 vaccine procurement, pandemic benefits | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Trump faces peril in docs probe after decades of scrutiny | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Trump Organization tax fraud trial in jury’s hands | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »
Military officer Dany Fortin acquitted on 1988 sexual assault charge | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »