Bank of Canada holds interest rate steady at 4.5%

The Bank of Canada kept its trend-setting interest rate at 4.5 per cent, confident in growing evidence that sky-high inflation is starting to ease. But economist Armine Yalnizyan says she doesn't see two per cent inflation coming back any time soon.

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[test]

The primary take away is the oncoming aggressive US rate hikes and how it will impact FX and push import prices even higher for Canadians.

[zomgoose]

More Inflation is coming with this "pause". Canada's most vulnerable have been sacrificed. Good job BoC, CMHC and politicians of the last 15 years. You destroyed the Canadian economy.

[ericromagna]

They seem to think that the inflation caused by the renting/housing problem was caused by the increase of the rates, which is false.

Yes, increasing the rates makes the mortgage payments higher and, by consequence, also make rent prices higher, but the real problem is artificial low rates on the past years.
Reduce the rates will reduce the mortgage payments, but will increase even further the historical high prices, prices that are already based on DEBT.

The problem with the Canadian economy is building the housing market on debt, and increasing the rates would purge the greedy and pig loans and reduce the home prices. We can't afford artificial low interest rates anymore. It's best to deal with that sooner rather than later.

[markplain]

Please, Please, Please CBC - ALWAYS USE Armine Yalnizyan for economic commentary. She is VERY GOOD, plane language, and straight to the point.
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As a person who studied economics I often get frustrated with commentators that either say stuff that breaks with basic economic theory or event crazy words. I have come to believe that some networks purposefully find these people to say something 'dramatic' for entertainment purposes.

[WJung-cclc]

Canadian dollar is about to collapse in accordance with the FED's standard 😊

[iEtthy]

Looney already tanking. Cant wait for $25 lettuce by September.

[mondayjoker]

Lowering the value of the Canadian dollar on the eve of the planting season. I'm sure that won't have any negative effects for the economy at all... But seriously I've had enough of these hack economists.

[ronl]

CBC covering for Justin and Tiff, it's just so sad. But remember you're richer than you think!

[ganarama]

Are they really concerned about the homeowners?

[zomgoose]

This "economist" thinks that interest rates, resulting in a devalued CAD will have no effect on food costs? The reason Canadians don't have any money is because housing is extremely high in Canada. These rate hikes are 14 years overdue.

[Triggernpf]

Very nice interview. I appreciated the populace perspective and the recognition that some factors in the economy are not well controlled by the central bank raising or lowering interest rates.

[MrSamba]

What can we expect from april 2023’s decision?

[henryb]

Everything should inflate or deflate in sinc. Raising interest rates to deflate housing while everything, including building materials remain inflated does nothing other then make us more poor.

[nickyfurlano]

The good news for retirees and savers is the bond market is pushing up bond yields at the longer end of the curve. Corporate and strip bonds out around 2040 to 2050 might be a prudent investment.

[VibhorB]

I agree with this perspective. We ain't going back to 2% s8nce we were essentially importing deflation . Now we are moving in the opposite direction when it comes to outsourcing and also not going for the cheapest options (taking into account things like self sufficiency, sustainability etc)

[HS]

Housing problem is the higher demand created by real estate investors, restrict their financing ( uninsured mortgages) to reduce the demand!!! Investment properties should pay higher taxes than principal home! Higher property tax, higher land transfer tax, …., to lower the demand!!

[justanopinion-ubpp]

A lot of people that are hurting financially right now could have been in a much better position if only they would have taken heed to the warning signs. Borrowing free money the last ten years and buying stuff they really could have done without!

[prashantdhotre]

First thing

Implementation of MRP : Maximum Retail Price regulation is needed. In US, Canada and Uk
To control inflation on day today items.

Rich are getting Richer as there is no control on retails prices.

[theGiantAngryRobot]

Folks please prepare for the pension crisis, we need to prepare ourselves for the future possibility of no social service support from the government

[hrb]

That analyst is good. I like her. Honest, to the point, and pragmatic.