High inflation is worse for workers than high interest rates since wage hikes always lag price rises. This round of inflation was brought to us by poor economic decisions … pumping billions of dollars into the economy without raising taxes, as well as the Ukraine war. It wasn’t caused by corporate greed, as some claim. The BoC is doing absolutely the right thing. If they don’t raise rates now they only kick the can down the road when the pain would be far worse.
High inflation is worse for workers than high interest rates since wage hikes always lag price rises. This round of inflation was brought to us by poor economic decisions … pumping billions of dollars into the economy without raising taxes, as well as the Ukraine war. It wasn’t caused by corporate greed, as some claim. The BoC is doing absolutely the right thing. If they don’t raise rates now they only kick the can down the road when the pain would be far worse.
High interest increases mortgage payments, which increases rent, which affects workers as well.