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> rates have mostly peaked What is this based on? I am not so sure if I believe that. Canada's inflation rate jumped to 4% last month (although a lot of that w
by Fervicus 3y ago
> rates have mostly peaked
What is this based on? I am not so sure if I believe that. Canada's inflation rate jumped to 4% last month (although a lot of that was apparently due to an increase in gasoline prices).
- b112 3y agoIt is not 4% per month, that is the yearly rate, as a current value. And it didn't "jump", it went up a tiny bit. Target inflation for the Bank of Canada is around 2% yearly. The bank did not increase rates the last round, and inflation is dramatically down from a year ago. It wants to ensure it doesn't over correct.
- Fervicus 3y agoFair points and I stand corrected in some of my wording. But that still doesn't explain why rates have "mostly peaked". It is equally possible that we are nowhere near the peak.
- b112 3y agoMany infatuationary pressures have eased. I could write a bunch of things here, but you'd get a better look if you googled on why the bank of canada has eased off a bit on rate increases. Of course, the future is an unknown, but inflation is about half what it was a year ago. Heck, there has been some talk of deflation! A lot of stuff peaked due to supply, and those prices could drop dramatically.
- Fervicus 3y agoI speculate that we will be seeing more hikes. But I have been wrong before :)
- b112 3y agoThat's why I said "mostly peaked". But rather than large jumps every announcement, I suspect we'll skip some, and only have small, quarter point corrections. Maybe one in October, and in the spring. This indicates a soft landing, but I agree, we'll see. Anything could happen.