Other central banks publish a projected interest rate path consistent with their economic outlook—not so in Canada.
bank of canada
Ottawa is spending nearly one-third more than it was in 2019 before the pandemic.
The central bank has acknowledged that it underestimated the inflationary effects of its actions.
The Bank of Canada's “easy” policies help explain the current pain at the pumps.
The 2021 agreement introduced a new goal—that monetary policy should also support maximum “sustainable” employment.
The goal of "maximum sustainable employment" is largely determined by forces beyond the central bank’s control.
Federal debt interest will cost a projected $42.9 billion in 2026/27.
Ramping up interest rates at this juncture places more of the burden of fighting inflation on consumers.
If the inflation rate remains relatively stable over time, suppliers should know when higher prices signal increased scarcity.