The Impact of Interest Rate Increases on the Economy

There’s a growing chorus of critics of the central bank’s decision to increase interest rates, as things like food and housing are keeping inflation up, and seem largely unaffected by higher rates. This comes as the Bank of Canada increased its key interest rate on Wednesday. It’s the 10th time the central bank has hiked the rate since March, 2022 — bringing it to five per cent. The move is all part of an effort to rein in high inflation, but that has come down significantly since its peak last year. Armine Yalnizyan, economist and the Atkinson Fellow On The Future Of Workers, explains on today’s episode. For transcripts of this series, please visit: https://www.cbc.ca/radio/frontburner/transcripts