December 21, 2024

The Queens County Citizen

Complete Canadian News World

Inflation: “It can be painful”

Inflation: "It can be painful"

Inflation hitting North America increases the risk of recession here.

Also read: Interest rates: Towards a significant increase in Canada?

Also read: Quebec school limits tax increase

Although the US Central Bank has raised its key rates by three-quarters (the largest increase since 1994) to fight inflation, its Canadian counterpart may also follow suit.

“It simply came to our notice then that we were breaking down and the economy was warming up. If we raise rates very quickly, the economy will respond, “said Robert Asselin, vice president of public policy at the Canadian Business Council.

To better understand the situation, the expert likened inflation to cancer, because “if you let it spread throughout your body, it will be more difficult to eliminate.”

“If inflation is rooted, it’s a risk, it’s very difficult for companies to raise wages, raise prices, and then bring it back to its level,” M Asselin explained.

The intervention of central banks by raising key rates to bring prices back to their normal level, the swing of the pendulum aimed at preventing taxpayers from paying off purchasing power.

However, he acknowledged that their numbers were not enough to defeat Trump’s government.

Watch the full interview with Robert Asseline in the video above.

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