Posted on 07/13/2022 7:50:54 AM PDT by Oldeconomybuyer
TORONTO (AP) — Canada’s central bank said Wednesday it is raising its target interest rate by a full percentage point in an effort to fight inflation — and warned more rate hikes are likely to follow.
The Bank of Canada raised the overnight rate to 2.5% in the biggest increase since 1998 and the highest level since 2008.
The bank said inflation is higher and more persistent than had been projected and the bank expects it will likely remain around 8% in the next few months. It blamed the war in Ukraine, ongoing supply disruptions and excess demand in Canada.
The bank warned that if elevated inflation becomes entrenched, the economic cost of restoring price stability will be higher.
“With the economy clearly in excess demand, inflation high and broadening and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates by raising the policy rate by 100 basis points today” the bank said.
“The Governing Council continues to judge that interest rates will need to rise further.”
The Consumer Price Index in Canada rose by 7.7%, the highest yearly increase in almost 40 years. The bank said more than 50% of price categories have risen by more than 5%.
(Excerpt) Read more at apnews.com ...
Get ready to carry another pocket full of Loonies and Toonies.
The talk is the Fed will raise interest rates rates by 100 basis points. The Fed is late, yet again and way too short. I am breaking out and dusting my copy of Ron Paul’s End the Fed this afternoon. Their job is to keep full employment and inflation under 2%. They are to stop recessions. Guess what, they fail and have repeatedly failed since their inception. The only thing the Fed does is provide a backstop for Big Banks. It allows Big Banks to make glactically stupid decisions without consequences.
Transitory.
************
Well, it IS transitory for the elites since they barely notice it. Inflation will no effect on THEIR lifestyles.
Did they ask Klaus Schwab to see if it was OK ?
I’m sure the French aristos thought the same thing before they lost their heads...
Thanks. I need to work on my argument skills. “Eff the Fed” isn’t cutting it.
America is too passive to get worked up over anything. All we care about is bread and circuses. As long as the TV remote control still brings us nightly entertainment, all is well.
Heck, it was a struggle to get people to attend Tea Party rallies so the thought of America getting restless isn’t likely. We’ve long since lost whatever fighting spirit we once had.
Bingo! Have to check with the ruling elites first.
“Their job is to keep full employment and inflation under 2%.”
Lol.
Only their bosses get to decide what their “job” is..
If you want to know who their bosses are, all you need to know is who gets to fire them for bad performance.
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