What the Bank of Canada governor will do to get inflation under control

In a wide-ranging interview, Bank of Canada governor Tiff Macklem says Canadians should expect more interest rate hikes, and a mild recession is possible, as the central bank continues its fight against inflation.

#Inflation #InterestRates #BankOfCanada #CBCNews

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[jptrainor]

Canada's suicide rate peaked in 1983. That corresponded to a period of high inflation, a steep run up in interest rates, many mortgage defaults, and widespread financial despair. That's the pain that these foolish politicians and beuraucrats bring to us.

[Michael-xmux]

After cutting my Disney subscription now I can afford a motgage

[Hajeshghful]

“We have to increase interest rates and yes I get it, it’s counterintuitive, rent’s going up, groceries are more expensive, gasoline’s more expensive, and now their borrowing costs are more expensive, so how does that work?”. IT DOES NOT work. All you’re doing is making it impossible to make ends meet. How on earth will making me pay more on my student loan interest (LOC) and paying more for rent will bring the cost of living down? All you’re doing is increasing profits for the big 5 and making 50% of home owners potentially default on their mortgage.

[Sarahyangtoronto]

My grocery bill increased by $200 a month, but my mortgage payments increased by $2000 a month because I listened to you saying rates would stay low for a long time. So no, I don't appreciate your work. Rate increases are hurting me much much more than inflation. You need to put a stop on rate hikes!!! You are literally ruining a lot of people's lives. Bankruptcy rate is so much higher than last year.

[mongoblazingsaddles]

LOL! Printing half a trillion dollars was insane.

[fraz]

7:07 "this was caused by the pandemic... it was not caused by an economy that was out of balance before." Tiff Macklem

[rupasandhu]

It would be nice if he just told the truth and said I am increasing interest rates because Trudeau is overspending. If Trudeau stopped spending and reduced government expenses, our inflation issue would be solved and I wouldn't have to do anything.

[marquisconstruction]

I appreciate your approach to teaching, to my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn't good enough. I was quite unsure about investing in this current market and at the same time I felt like it's the best time to get started. on the market.

[jptrainor]

It's not counter intuitive at all. Indeed, many critics saw it coming, warned about the imminence of this outcome, and warned about the harms it would cause. They were dismissed.

[briankroger]

I couldn't afford food, heat or rent untill I cut my Disney+ subscription. Now all is well. Thanks for the advice Freeland. Smh.

[TheTruthAlways]

Raise the interest rates for 2nd, 3rd, 4th mortgages and leave the first time homebuyers alone.

[billwhitis]

What about corporate inflation? Why is it that the working person has to endure the cost of lowering inflation? Lowering inflation is not going to effect the already high prices that we are paying.

[cdpgbc-mwkz]

Well between the Federal Liberals and the Bank of Canada not following its mandate, he better fix the mess.

[rolfehorne]

If we cut to the chase, the question for average Canadian homebuyers is what can I afford at current mortgage rates? With fixed term rates over 6% the stress test requires that you qualify at 8.5 %. What that means ( barring a huge reserve of cash) is that you need a household income in excess of $400, 000 to buy the average home in the GTA or the GVA.

[ahrick]

Everybody get enrolled as a housing speculator. Real estate agent, mortgage agent, banker are the beneficiary, that's why no body is willing to work, and the price of food and CPI keep increasing

[jptrainor]

“Our message to Canadians is that interest rates are very low and they’re going to be there for a long time, ” - Tiff Macklem, July 2020, a month after he started as BoC govenor, with the BoC overnight rate set to 0.25% and with the BoC entering a period of quantitative easing, a first in Canada, where it effectively monetized the massive issuance of new federal and provincial public debt, and private mortgage backed securities. At the same time, the mid 2020 run up, turned bubble, in real estate sales activity and prices began.

[Tzimisce]

Increasing interest rates doesn't decrease profiteering prices, and basic necessities aren't a pressure that making them less affordable is going to relieve. The reason for this inflation, unlike previous ones, isn't that people are flush with money and so the same tactics just aren't going to work.

[parkerbohnn]

Canada needs permanent double digit interest rates.

[larrykazdan]

Under current circumstances, where most inflation drivers are rate-change insensitive, trying to strangle the economy down to 2% inflation is an exercise in economic sadism. Vulnerable workers with families and debts will feel the most pain. An RBC report suggests that a moderate recession could result in the loss of about 350, 000 jobs, and according to the CCPA, if the Bank of Canada targets 2%, the tally could reach 850, 000.

Tiff the Asphyxiator is unlikely to take the oxygen out of inflation, but will likely snuff out the economy, and take down many Canadians gasping to survive.

[josequezada]

Idk why but some how you can just tell he is throwing stuff at the wall, hoping one to stick. I don't disagree in manipulating inflation, but he's playing catch up. This should've been handled since Harper's time and instead everything is being rushed now.