February 24, 2024

The Queens County Citizen

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Key rate hike: “Bank of Canada is waging an uphill battle”

Key rate hike: "Bank of Canada is waging an uphill battle"

For the tenth time in a row, the Bank of Canada has raised its key rate; The new hike is aimed at curbing inflation, said economist Francis Gosselin.

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“We’re riding on the horizon at the Bank of Canada and there’s a fear that inflation will stay at 3.5 or 4% for a long time, which is way beyond the target,” he explained in an interview with TVA Novelles.

Mr. According to Gosselin, supply problems, particularly the strike at the Port of Vancouver, partially forced the Bank of Canada’s hand.

In seeking relief for taxpayers, many governments have multiplied financial aid, but at the same time added “a lot of money to the economy,” Francis Gosselin declared.

“The Bank of Canada is fighting an uphill battle,” he said.

Economist stated that the economy is doing well even if the labor problem continues.

The Bank of Canada forecasts economic growth of 1% this year; It’s part of a long period of economic stagnation.

“We are not counting on a recession scenario. On the other hand, it will be a period of low growth, which means that companies that want to grow will be at the expense of others. So these are periods of increased competition,” explained Mr. Gosselin.

However, such a situation is beneficial for job seekers, he said.

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To watch the full interview, watch the video above.

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