Manitoba Co-operator
The reputation of the Bank of Canada will be undermined if the public believes that it’s pounding away with a hammer that is not needed and causing much hardship in the process.

Comment: Are interest rates the right tool?

The Bank of Canada’s ‘resolute’ fight against inflation could threaten its credibility

The Bank of Canada “resolutely” declared it will fight inflation by raising interest rates. To demonstrate its unwavering commitment to reach its two per cent inflation target, the eighth consecutive interest rate hike on Jan. 25 brings the policy rate to 4.5 per cent. The bank’s logic is this: when demand outpaces what the economy