"It doesn’t take an economics genius to see that the Bank of Canada’s high rate policies are feeding inflation" - July 20 Canadian News update + commentary
Higher rates are not only fueling inflation, but they’re causing homeowners to dip into their retirement savings, if they have any
It should have been a good news story: Canada’s inflation took a significant drop down to 2.8%.
But it didn’t take long for the Bank of Canada to rain on the parade when they told us, yes, it was good news. But not good enough.
They tell us that one of two of major factors that worry them are ridiculously high food prices, they’ve gone up by 9%, and nobody seems to want to do anything about that.
And don’t blame consumers for the fact that we have to eat!
The other factor they single out is rising mortgage rates.
Just let that sink in for a minute!
They’re worried about high mortgage interest rates, but mortgage rates are only rising because the Bank of Canada keeps jacking up the prime lending rate.
It doesn’t take an economics genius to see that the Bank of Canada’s high rate policies are feeding inflation; they aren’t the solution, they’re a big part of the problem!
Those higher rates are not only fueling inflation, but they’re causing homeowners to dip into their retirement savings, if they have any, and it’s shutting out many others from home ownership.
The Bank of Canada tells us that in spite of all this hardship, they don’t plan to even think about reducing interest rates until mid 2024.
But, of course, not everybody is suffering in these difficult times.
The Bank of Canada recently handed out over $26 million in bonuses and raises to their employees.
Double standard? I think so!