Annual inflation peaked at 8.1 per cent in June 2022, well above the bank’s 2 per cent target.
interest rate hike
Even after inflation is brought to heel, Canadians should not expect interest rates to return to pre-pandemic levels.
We’ve seen a steady erosion of per-capita GDP growth and persistent government deficits.
By 2028, the federal government will add a projected $131.8 billion in debt.
Ottawa is spending nearly one-third more than it was in 2019 before the pandemic.
The overall employment rate hasn’t recovered to 2019 pre-COVID levels.
Persistent labour shortages are helping drive up costs.
Ramping up interest rates at this juncture places more of the burden of fighting inflation on consumers.