Has the Bank of Canada gone too far?

Updated July 13, 20231 Mins read232

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The Bank of Canada has increased its key interest rate for the 10th time since March, 2022. It’s all an effort to rein in inflation, but critics are worried high interest rates may be part of the problem, as certain things like housing costs drive up the inflation rate.

CBC News · Posted: Jul 13, 2023 7:30 AM EDT | Last Updated: 2 hours ago

Bank of Canada Governor Tiff Macklem is pictured in a screen grab from an online video stream of the press conference. He's holding both hands up in front of him, as though grasping. There's a water glass on the table in front of him and a blue background with multiple "bank of canada" logos and titles. — Bank of Canada Governor Tiff Macklem speaks to media about the central bank’s decision to raise its key interest rate to 5 per cent on Wednesday, July 12, 2023. (Bank of Canada)

23:46Has the Bank of Canada gone too far?

There’s a growing chorus of critics of the central bank’s decision to increase interest rates, as things like food and housing are keeping inflation up, and seem largely unaffected by higher rates. This comes as the Bank of Canada increased its key interest rate on Wednesday. It’s the 10th time the central bank has hiked the rate since March, 2022 — bringing it to five per cent. The move is all part of an effort to rein in high inflation, but that has come down significantly since its peak last year.

Armine Yalnizyan, economist and the Atkinson Fellow On The Future Of Workers, explains on today’s episode.

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