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Inflation rate jumps again to new 18-year high of 4.7%
Statistics Canada says the 4.7 per cent rate is the highest since February 2003.
cbc.ca/news/b...

will interest rates ever return to 4-5% ? That what they were back in 2003 to target the inflation.
 

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Bonds are getting, in my opinion, worse and worse. Cash is disappearing at the rate of inflation which is over 6%, and I think is going higher."

Siegel anticipates rising prices will stretch out over several years, with cumulative inflation reaching 20% to 25%.
 

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Under pressure from Erdogan, the central bank cut key interest rates from 19 to 15 percent in September, driving a free-fall in the lira.

people in Turkey are protesting. What am I missing here? Turkish economy more developed compared to Canada. Are we going to have double digits interest rates next year? I hope so.
 

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Fed Chairman Jerome Powell warns Congress that inflation may keep rising next year

Fed Chairman Jerome Powell warns Congress that inflation may keep rising next year

unemployment seems to normalize around 4% same as it was in early 2000 when interest rate was around 3-4% to fight the inflation.
Perhaps it’s time for FED to do what it supposed to do? Control the inflation, before we need a bag of cash to buy a loaf of bread 🥖.
Raise the rate slowly 0.5%-1% per month.
 

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Raising rates would crash everything else.
It will crush down inflation. Other matters should not be important for central bank at this point. 4% unemployment is a bottom. People are not gonna flip burgers for $12 if they can make more, by selling covered calls in the bull market. That’s something that the fed can fix.
 

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0.5% / month for a few months would be insanely fast, and would be very tough. This is far more frequent than they normally meet to adjust rates, and it would be incredibly high.
What were the interest rates last we had this high inflation?
My income doesn’t grow 5-6% per annum to keep up with inflation. And it is central banks main and the only job to keep inflation in check, not to please the “self made investors”.
 

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That's not the only job.
The Bank has four core functions:

  • Monetary policy: The Bank’s monetary policy framework aims to keep inflation low, stable and predictable.
  • Financial system: The Bank promotes safe, sound and efficient financial systems within Canada and internationally.
  • Currency: The Bank designs, issues and distributes Canada’s bank notes.
  • Funds management: The Bank acts as fiscal agent for the Government of Canada, managing its public debt programs and foreign exchange reserves.
yet for some reason the inflation listed on the top
 

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I know, and that's why i posted the link you just quoted.

Inflation is a major responsibility, but not the only one.
Why bank of Canada ignores its major responsibility?
because I remember I called BofC when the loonie was dropping to 60 cents and ask when and how they going to interfere. The response was that they look at and target the inflation, but not the exchange rates. Perhaps now is the time.
 

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BofC will only increase rate if FED does. “Independent“ central bank.
American shoppers, especially those on low incomes have felt the pinch of higher prices, with annual inflation at rates not seen for 40 years.
The latest figures show prices rose 6.8% in the year to November.
 

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Historical rates
Savings Accounts
  • May 18, 2000 5.00%
 
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