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Bank of Canada raises its interest rate to 5% (www.cbc.ca)

submitted 2 years ago by avidamoeba@lemmy.ca to c/canada@lemmy.ca

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[-] doylio@lemmy.ca 7 points 2 years ago

Certainly some of inflation is caused by a decade of rock bottom rates. Our real estate bubble is probably partially caused by this

Ultimately, the BOC has a mandate to fight inflation, and very few levers to use. They cannot fix the supply chain issues, but they can quash demand, so that is what they will do

[-] EhForumUser@lemmy.ca 5 points 2 years ago* (last edited 2 years ago)

but they can quash demand

Can they? The BoC putting a higher price on money hasn't scared people off at all. In fact, it is what is now driving inflation.

The mortgage interest cost index (+29.9%) remained the largest contributor to the year-over-year CPI increase. Excluding mortgage interest cost, the CPI rose 2.5% in May

https://www150.statcan.gc.ca/n1/daily-quotidien/230627/dq230627a-eng.htm?indid=3665-1&indgeo=0