This is how Canada’s inflation rate could be reduced

Year-on-year, CPI inflation was 6.7% in March. In other words, average prices for consumer goods and services in March were 6.7% higher than in March 2021 – a rate well above the 2% target and the highest since the start of 1991. Under pressure from economists and financiers, Bank of Canada Governor Tiff Macklem seems … Read more

This is how Canada’s inflation rate could be reduced

Year-on-year, CPI inflation was 6.7% in March. In other words, average prices for consumer goods and services in March were 6.7% higher than in March 2021 – a rate well above the 2% target and the highest since the start of 1991. Under pressure from economists and financiers, Bank of Canada Governor Tiff Macklem seems … Read more

Interest rate hikes cannot magically beat inflation in Canada

Is the interest rate a magic wand to fight inflation? Given February’s 5.7% inflation rate, the Bank of Canada—as expected—raised its target for the overnight rate to 1.0% from 0.5 on April 13. At that time, the consensus among economists was that the Bank would raise the policy rate by another 50 basis points in … Read more