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Bank of Canada rate hikes ‘at best unnecessary, at worst a mistake,’ leading economist says ahead of rate announcement next Wednesday

https://www.thestar.com/business/2023/07/07/bank-of-canada-rate-hikes-at-best-unnecessary-at-worst-a-mistake-leading-economist-says-ahead-of-next-rate-announcement-wednesday.html

CIBC report notes that consumer spending in interest-rate sensitive areas is below pre-pandemic levels, indicating hikes not needed.

Bank of Canada rate hikes ‘at best unnecessary, at worst a mistake,’ leading economist says ahead of rate announcement next Wednesday

CIBC report notes that consumer spending in interest-rate sensitive areas is below pre-pandemic levels, indicating hikes not needed.

1 comments

mikeyBoy14

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“History could show that the recent Bank of Canada rate hike (and any subsequent moves) was at best unnecessary, and at worst a mistake,” said CIBC senior economist Andrew Grantham in a report.

To be fair, for all we know history will show the exact opposite -- that rates should have been raised higher and faster to control inflation.