In January, 2022, the conditions were in place to start hiking interest rates.
The annual pace of inflation had reached 4.8 per cent the previous month, more than twice the Bank of Canada’s target. Having played down the risk of inflation through 2021, central bankers were beginning to sweat. It was long past time to start tightening monetary policy.
Still, when the Jan. 26 rate decision arrived, the Bank of Canada punted. Instead of lifting interest rates off the ground, where they’d been since the early months of the pandemic, Governor Tiff Macklem used the rate decision to tie up loose ends and signal a rate hike would be
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