Macklem: 'By front-loading our policy response, we’re trying to avoid the need for even bigger interest rates down the road.'
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Printing money and then raising interest rates is like breaking your own windows and then fixing them. Increased interest rates do nothing to fix the negative supply shock. I can’t believe our Governor of the Bank of Canada said this.
The banks are cashing in big time
@Larry Williams raising interest rates slows spending down so supply shortages are eased and prices should come down. You are correct in that this could have been eased with less spending and raising interest rates years ago when the economy no longer needed to be stimulated.
@Kyle Ruggles So would I but they are all hooked on printing money which is made possible through fiat currency manipulation. Their solution will be to move to a CDBC (central digital banking currency) which will enable more shenanigans. Sunak has already stated this policy initiative to be implemented in UK by 2025. He is former Goldman Sachs.
@Larry Williams To clarify .. Canada needs to produce more goods and services to correct the negative supply shock .. too much money going after too few goods and services. Raising interest rates will prevent businesses from making decisions that will increase the supply of goods and services. It will prevent them from being able to hire, and pay expenses that are necessary to being able to produce more. The distribution channels, shipping, etc. are still in disarray and are needing to rebuild .. this all takes working capital. Expect to see banks increase their interest rate spreads even more, thus exacerbating the Bank of Canada’s actions. It’s a real mess. A dark winter for sure.
@Kyle Ruggles you’re kidding right? Many countries did not print money like it was going out of style including Japan, South Korea, Switzerland and many others
The budget will balance itself
Not if the Bank of Canada crashes the system.
Well you see we’ve printed too much money again … It’s like grade 8 economics with these theives.
You need to lower everything or take take take tax off all most everything
No strategy, just incompetence
Hola..Disgusting ! With these hikes again every, couple of months ! No wonder we’re going into rescission!!!Unreal😡
Sorry honey the interest rates should be at around 10% if you want to control inflation
@kloosternator sorry sweetie, without producing more resources increasing interest is meaningless
you will never can achieve your goal by increasing prime interest rate only.. wait and see.. You are in a complete wrong direction Mr. BoC Governor!
THERE IS NO STRATEGY
He has no idea what his doing , justinflation
This is the same guy who said the interest rates would not go up a couple years ago.
Sorry for those who relied on this advice and renewed variable mortgages.
2023/2024 is going to be very interesting, Don’t let this 0.5 hike fool you.
don’t worry . this all just transitory. as someone said. also interested rate will stay low for a long time…he continued
Shouldn’t have printed those billions of dollars in 2020, Tiff you big dummy! Recession on the way!
Translation: we will crash the economy for a long deep depression..
It doesn’t matter what happens, the average Canadian is punished for being an average Canadian.
Does he even understand what is he saying? I think the last few lines were just mumbling
How much did he take as a pay raise?
cannot eat your cake and have it too; or serve two masters, this guy applied three time to be the governor – fourth time was the charm as they ran out of candidates
IMO this should have been done 5 years ago when the economy was in a better place. Now that things are tanking let’s raise rates makes no sense
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If they were serious they would have raised the interest rate by a minimum of 1%.