2min chapter

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The Bank of Canada Shocks The Bond Market- w/ guest Robert Asselin

The Loonie Hour

CHAPTER

The Effects of Central Bank Rates on Inflation

The Canadian central bank is trying to achieve a certain level of inflation. It has gone from, you know, basically zero up to four and a half very quickly. A lot of that has simply been as just year-to-year effects," he says.

00:00
Speaker 1
No. So if we're an essential banker body, right, so there's arms, legs, two eyes and nose and maybe something in here or maybe not,
Speaker 2
I say that just to get rich to laugh, of
Speaker 1
course. They're just trying to do what's to achieve what their policy mandate is. So for the Canadians is they want to focus or target, try to achieve a certain level of inflation. And where they've been surprised so far, you know, they've gone from, you know, basically zero up to four and a half, you know, very, very quickly. And it hasn't been that much of an impact on inflation. I would argue, and I think Rich has talked about for as well, you know, a lot of the slope memory inflation is not declined. We all know that, but you know, the media will say, Oh, yeah, inflation is down this one. It's just growing slower. I mean, that's that's all it is. But a lot of that has simply been as just year-to-year effects and, you know, some are like energy has come down quite a bit and stuff like that has already been caused by central bank rates. And that's where I think they're disappointed because they went from zero to four and a half, you know, very quickly. And in every central bank, you know, textbook that they were reading, you know, we should have had a significant pullback in the economy by now, like it should have happened. So that's why they're sitting there. You know, you guys don't remember, but they used to be a head of the Fed was this guy Ellen Greenspan. It was a long time ago. You
Speaker 2
can remember him. Come on.

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