INTEREST RATES ARE TIED INTO THE RATE OF INFLATION!
Tuesday Sep 20th, 2022
THE INTEREST RATE INCREASES IS DEPENDENT ON THE RATE OF INFLATION!
The Bank of Canada’s announcement last week on its benchmark policy rate was a clear indication that it intends to continue its rate-hiking path in the coming months, according to a prominent economist.
Benjamin Tal (pictured), deputy chief economist of CIBC World Markets, told Canadian Mortgage Professional that the central bank had used “very hawkish” language in its statement on Wednesday, which saw a 75-basis-point hike bring its trendsetting interest rate to 3.25%.
In that announcement, the Bank said the outlook for inflation meant its governing council believed the policy rate would need to rise further.
“Basically, the Bank of Canada is telling you, ‘We are not done,’” Tal said. “This is the Bank with a very clear mission, to make sure that inflation expectations are under control. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # INTEREST RATES # INFLATION