Further rate hikes could provoke recession in Canada, warns economist

Further rate hikes could provoke recession in Canada, warns economist 1

12 comments

  1. 2.5 percent while we are raking mass profits on gas oil and grain…. mismanagement is what it looks like.

    1. Interest went from 0.25 to 2.5 in 5 months, that’s a 10x on interest in 5 months.
      Any projects launched in the last year will probably be negative NPV now, so it’s likely new hires are going to be let go once their probation is up.
      What this means in the long term is that we will keep our factories in Asia and stop reshoring, because supply chain disruptions is still better than a guaranteed loss of moving factories back now.

  2. So, tell me mister economist, how do you propose to stamp out inflation without rate hikes?

  3. Get interest rates above inflation and take the temporary pain quickly and swiftly. Dragging this and chasing inflation will only allow inflation forces to grow stronger and more permanent. We are going to enter a recession anyway, might as well take the hit now while the rest of the world continues chasing inflation, we can stop the speculation and come back to a more reasonable growth. Too many assets are inflated beyond means and reason because of the cheap money that has been sloshing around the system. The businesses with bad growth and fancy pansy ideas need to be stomped out so money flows into more healthier projects.

  4. ATTN SHORT SELLERS, RETAIL INVESTORS!!!
    I see retail investors listening to so called news & go Short. Remember it’s the time when the super rich buy from you, do quick Squeeze to take your money. ALWAYS DO THE OPPOSITE! “Only dead fish go with the flow”

  5. The Bank of Canada waited too long to raise the rates. Consumer’s are going to suffer by paying more for everything.

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