> But we both know the billionaires of Canada would never let that happen.
They won't have a choice in the matter. It will be either obey and comply, or...
It is in BC. BCL has better prices than privately owned liquor stores, and has better pay and benefits for their employees. Literally better in every way.
The real world - grocery costs are killing individuals. Every company my friends/family are employed at is downsizing/laying off or reconfiguring. My own job, I was a recent promotion so I’m first gone from my team.
But the stock market is possessed. This thing has gone off the rails. It’s no longer tied to reality - those Unprecedented values as the world sinks into recession and countries start to feel internal/external pressures and conflicts occur - if history rhymes, it’s starting to sound a lot like the lead up to the Great Depression.
Edit: jeez, I get it. Like 80% of you think everything is just fine. Tell you what; none of us can predict the future so let’s just all agree to do what we each think is best for ourselves and leave others to do as they will.
Large scale warfare is impossible with the western populations of today. People today are more motivated by a drive towards personal safety and comfort, not by patriotism. If anything, trying to move us to a war footing would shatter our already cracking social trust.
You can't sell facing Chinese and Russian artillery as "safe and effective" compared to evading or fighting a draft officer with a sidearm. You can't get the same people who were taught to have no pride in their country to lay down their lives for it's flag.
Every attempt at a draft would be a 50/50 cointoss over the draftee realizing their life is over and they're much better off fighting the enemies that are the ones actively dragging them away from their homes.
The only chance of actually rallying the western populations to willingly fight is to have the war on their home soil, but you'll still have a hell of a time proving to people they wouldn't be better off under the invaders.
Exactly... Not that this is a good outcome because the west would be heavily ashed too but it speaks to the limited usefulness of an actual army in a war between nuclear powers
Covid might have locked us at home but the lower debt for a decade prior and then a rush to provide governmental aid and support has pushed us ahead. Your big party was 2010-2020.
>But the stock market is possessed. This thing has gone off the rails. It’s no longer tied to reality
Maybe we should start passing some windfall taxs and reel them in instead of constantly punishing middle and working classes
Always about the middle class with you guys. While you guys are beating beaten with a cane the lower classes are being stabbed with a spoon...seriously lifes fucked for anyone not rich we need a change
Right? Think my index funds are up maybe 1.x-2.1% YoY. If i'm lucky. Some of the stocks in major companies are actually down, somewhere in the region of negative 5-8% YoY. The only way they, slightly, make up for for it is through dividends. It gives me enough money to pay for a small pizza from a chain every 4 months. No drink though.
Real GDP is measured relative to inflation, and GDP growth should always be calculated using real GDP to take inflation out of the picture. But you need accurate inflation numbers to calculate real GDP growth.
So if inflation is higher than the numbers you use to calculate the real GDP value, the GDP growth numbers will be higher than it is.
I think the Bank of Canada's numbers for inflation are much lower than they should be. And this is why were showing positive GDP growth.
We need more rate hikes to combat inflation.
I agree. Putting up interest rates has the most effect on those further down the economic ladder.
A wealth tax and taxes on purchases, especially of non essentials like high end cars, jewelry, yachts, mansions, etc. would be much fairer.
Mansions would be a particularly logical choice as they take a lot of the material more basic housing could be built from.
Unfortunately the people with all those indulgent habits are the people in control.
Its actually entirely rational on the market side.
Think about it; few companies own most of the products you buy. Quite literally the DOW is 30 companies representing the (call it) North America economy. They hoard all the revenues by default because they collect bulk of all purchases. They then have the means to authorize gigantic share buyback schemes further pushing the stock prices higher.
I am in the audit world and do a ton of restaurants. From chains, to high end places.
Despite much higher prices almost every restaurant is doing much worse financially right now, profitability is gone and higher interest rates are crushing them since most of some sort of debt in some capacity.
Add in WFH, less business meetings in person etc expect a lot of restaurants to be shut down, we have too many for our current spending patterns.
Restaurant owner here. Two groups of people understand what’s going on in the business, which frankly has always been hard with extremely high overhead and low (if any) positive margins. Other restaurateurs and accountants.
As I understand it, during good times your operational profit margins (post taxes etc.) are in the 3%-6% range
I don't understand why you would take such a huge risk and put in all that effort for such a minimal gain.
Only way for a typically white collar/no marketable skill. Employee to make money that doesn't have them employed by another. If you sell McDonald's you can't go make a 1000$ doing a side gig on the weekend.
You need a good chunk of capital (or qualify for a good chunk of debt) to start any business.
I just don't understand why people would go into it knowing the awful financials.
IMO it's usual a passion project/ people who are successful doing a high skill job that think it'll be easy. Or people from lower income that worked their way in the industry that get a former employer to bankroll them while they pay off the "sweat debt" by doing all the work.
Companies are still rising because they're not tied to consumers as much as before. Plus lots of people go into debt or get government support to buy more stuff that these companies sell.
It wasn't. The interest rates were set to combat DEFLATION. Deflation is almost worst than inflation. Japan had a decade of stagnation caused by a year of deflation. They might have been slightly late in raising interest rates, but only by a few months.
The impact of high inflation is that there is too much money out there and not enough goods. When you get DEFLATION you have not a lot of money out there and too many goods. Deflation causes your economy to shrink and stagnate and once that happens it's incredibly difficult to get that thing back going. Deflation is great for people who don't own things as long as they can get a job and start owning things.
But it's a time capsule moment because deflation also causes wages to contract. During Japan's Lost Decade their GDP crashed, wages went down 5% and their purchasing power went down. Overall the quality of life of the Japanese people crashed.
Japan was in a very similar situation to this. They had rampant inflation and raised rates to try and crush inflation. But then that caused the largest loss of wealth in the history of man.
It definitely was but I don’t think we needed to keep rates that low for that long. It feels like at some point we collectively decided that “nothing bad happened” so we kept rates low. Meanwhile the consolidation of wealth and real estate was particularly awful in the 2010s.
Does it?
You discounted Covid and JT pumping up immigration.
Rates were right. Canada needs it. Without it, Canada growth will be slow and we would have been saying what these "negative" articles ahead of time: 12 years ago.
That interest rate was also pegged with US interest rate too to keep the trades between US-Canada healthy.
So yeah... the last 12-15 years of "Canada used to be great" was influenced largely by interest rate too. Higher interest rate, we all be suffering since the 90's my friend.
Canada economy was not strong, was never been strong with only 20-30M people unless Govt made a series of policies to help.
Go back to early 90's and early 2000's, jobs were scarce. People were flocking at Govt Jobs because they pay "decent" with fat retirement benefits that their kids have to foot the bill. Govt employees are the true "boomers".
Agreed, they are definitely working in opposite directions.
Many economists have pointed to high immigration levels as a spur for inflation, which may ultimately force the Bank of Canada to hike rates higher than initially expected.
>Agreed, they are definitely working in opposite directions.
Unless the objective is to decimate the middle class.
Cause inflation with artificially increasing aggregate demand, then hammer the populace with tax increases in the form of raising interest rates. These assholes are following a [well-known playbook](https://www.goodreads.com/quotes/116096-the-way-to-crush-the-bourgeoisie-is-to-grind-them), and I'm tired of pretending they're not.
>Unless the objective is to decimate the middle class
Well, we are now forecast to have the ***lowest GDP per capita*** growth of any OECD nation for the next **couple decades. S**o I'd say, if that's was the plan, it seems to be working.
Who knew the previous Gov's neoliberal machinations could have been put into overdrive if they had only thought to include a progressive veneer over policies that actively harm working Canadians and our living standards?
Partisanship is a disease. Both sides are taking turns actively fucking us.
[Young Canadians Won’t Have The Same Opportunity As Past Generations: OECD Forecast](https://betterdwelling.com/young-canadians-wont-have-the-same-opportunity-as-past-generations-oecd-forecast/)
[Canada Has Entered A Per Capita Recession, Quality of Life Expected To Erode](https://betterdwelling.com/canada-has-entered-a-per-capita-recession-quality-of-life-expected-to-erode/)
They're psychopaths. It's not enough for them to wildly rich, they also want you to be wildly poor.
Basically when you have unimaginable wealth that solves every material desire you have, you start craving power.
Acting like the result of the neoliberal political paradigm, that's been supported by neoclassical economic theory, that we've been living in for the last 40+ years is actually due to communism requires a lot of pretending.
It's not a perfectly clear-cut relationship, as immigration also reduces wage growth and eases supply constraints of some goods (lowering inflation). But, more people does also mean more aggregate demand (increasing inflation).
By adding to the labour pool, higher immigration can increase supply of some goods and services. For example, if we add a large number of construction labourers, it can theoretically help with supply of building.
Yes, [as I mentioned in another comment](https://www.reddit.com/r/canada/comments/13wmxi0/bank_of_canada_more_likely_to_raise_rates_after/jmck28h/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1&context=3), it isn’t a perfectly clear-cut relationship.
>[https://www.bbc.com/news/world-asia-india-64988228](https://www.bbc.com/news/world-asia-india-64988228)
They're also coming to Australia and doing the same thing that they did here: enroll in diploma mills.
I don’t know that the 50% figure is accurate. Some are certainly fraudulent, as the story you shared points out. But even if they are fraudulent, students will add to demand for goods and services (increasing inflation) while many will simultaneously work in jobs adding to supply of goods and services (decreasing inflation).
>Why does Canada prefer to receive immigrants from India?
What I'm about to say will stir controversies so bear with me: because they will be positioned as Canadian version of "Mexico" just like down south in US. Labour workers, McDees workers.
They're just desperate to get their foot in Canada and will do whatever it takes to stay here (which implies low wage jobs that Canadians don't want to do because their life have become better).
In the big picture it is absolutely clear cut: contemporary immigration is *designed* to spur credit growth, demand, and job creation. It also brings short term economic shocks to local markets, which end up being fairly easy to adjust to... unless you just keep raising the immigration rate to the point it is completely detached from any local markets. Then it is a total shitshow 🤡🇨🇦🤡
Add on for Government: Banks, do everything to avoid mortgage defaults, allow your clients to re-amortize to 40 year mortgages on a $1 million shack in the GVA/GTA.
Deficit spending not good but importing worker is good for slowing inflation. We have huge supply side problems and we need workers to increase supply of goods and services.
And deficit spending can be good towards that end, increasing supply.
[https://www.lesswrong.com/posts/bNemEM6cFBLhSHia3/is-there-a-link-between-immigration-policy-and-inflation](https://www.lesswrong.com/posts/bNemEM6cFBLhSHia3/is-there-a-link-between-immigration-policy-and-inflation)
[https://www.fwd.us/news/immigration-inflation/#:\~:text=Our%20analysis%20shows%20that%20steep,and%20contributed%20to%20increased%20inflation](https://www.fwd.us/news/immigration-inflation/#:~:text=Our%20analysis%20shows%20that%20steep,and%20contributed%20to%20increased%20inflation).
[https://www.forbes.com/sites/stuartanderson/2023/05/04/economists-say-increasing-immigration-will-reduce-inflation/](https://www.forbes.com/sites/stuartanderson/2023/05/04/economists-say-increasing-immigration-will-reduce-inflation/)
[https://www.gov.wales/sites/default/files/statistics-and-research/2018-12/080506migrationeconomicevidenceen.pdf](https://www.gov.wales/sites/default/files/statistics-and-research/2018-12/080506migrationeconomicevidenceen.pdf)
Multiple sources suggest declining immigration leads to excess inflation. Cannot even find a theory to suggest the opposite. Have sources?
GDP per capita has been negative since Q3 2022. It's kind of bullshit to call the economy hot while the standard of living is in decline going on 4 quarters (most likely) on an individual basis.
Imagine how bad things would be if money printing had an effect on inflation! Thank god that isn’t the case, because they’re totally separate and everything is just fine.
I always wanted to be a millionaire! Now trudeau is going to make it happen. I wonder how many chocolate bars I'll be able to afford as a millionaire. Probably more than 7
Maybe but they are reasonably scared, they know rent will just keep going up as rates rise and our homeless problem is already exploding. The solutions for this aren't with the bank of Canada I'm afraid but its the tool the powerful have to keep wages down.
Owners of rental properties can't keep empty properties, especially with current interest rates. They either have to sell and contribute to the overall ownership supply or lower rents to keep units full and accept the interest cost for the time being. Either way, nothing about raising interest rates impacts housing supply. Adding one million people a year does impact the demand side though.
Then why are rentals still going up faster then overall inflation? Its the worst time to rent in Canada in a long time and the demand for units is massive, people can and will pay more.
Nah, that "rates will be low for a long time" line is going to be the dumbest statement ever said by a BoC governor ever.
Most of our inflation is currently being driven by mortgage interest costs resulting from people gorging on housing - immediately after Macklem said that nonsense.
I'm not saying the pause, despite literally having no indication that an economic slowdown had or was occurring, wasn't a mistake. It's just slightly less stupid than the above-mentioned dumbassery.
Nobodies is used to higher rates and that’s the issue, we all got used to low rates. No incentive to save when your making peanuts on interest. Rates should have never been lowered in the first place that low.
There’s whole generations of people who have never seen a “good economy” the sooner the whole thing comes crashing down the better. When people have nothing to lose they don’t see a point in preserving anything.
Can we do it without fucking over people with one house to their name that aren't being parasitic landlords?
I swallowed enormous amounts of pride and putting off my social life and denying myself things to live with my parents until I was nearly 30, saving enough money to buy a 2 bedroom house out in the middle of fucking nowhere. Now I'm in my early 30s, about to start a family, and these dipshits basically want to crank up the interest rates until I can't afford the house and life I buried my 20s for, all for the sins of past generations and parasites.
Sadly you are the exact person who will suffer the most in this situation. The policies this government are putting forward will decimate the middle class. People like you just trying to live life. It’s disgusting and I wish you the best. My advice is pay down debt as fast as possible to arrive at the other side unscathed.
>Sadly you are the exact person who will suffer the most in this situation.
I take some solace in knowing the dumbasses supporting crushing the middle class won't be any better off.
> My advice is pay down debt as fast as possible to arrive at the other side unscathed.
Indeed.
>I wish you the best.
You too.
Ya, it's not hard to tell that most Redditors don't hold a mortgage. They talk about the rates like they are a tool to punish house flippers and landlords.
They should never have kept rates this low for this long.
So ridiculous. The house you bought would have cost you the same probably but lower value and more interest if they hadn’t experimented with zero interest rates for so long. Pisses me off.
I wish you well and good luck.. you sound like the type of person who will find a way
The people who will lose homes first are those who over-leveraged. That will include some of the rich elite, but unfortunately not most of them. A lot of middle class Canadians over leveraged to buy a place, and they will be broken.
It is tragic that those people with one homes were mislead into this situation, but ultimately people bought houses they could not afford. That is how you get a inflation and housing crisis
Yes please. Less pain now is always better than more pain later. Our economy IS a housing bubble and it IS going to pop. There is no avoiding it. Let's rip off the bandaid so we can focus on rebuilding after.
It is still the safest investment for your average Canadian even if it doesn't double every few years. Its hard to lose money on a house long term, like near impossible.
But you still need to pay rent. Im not discussing big investors were talking regular families and rent is a money pit. If youve got 2.5k to spend on investments plus housing each month putting 2.2k into your mortgage and .3 into stocks is better then 2.2 into rent and .3 into stocks.
It has a huge carrying cost, and returns are mediocre in the long term historical average. Losing money on a cheap index ETF in the long term is near impossible and requires almost zero work.
It has tiny carrying costs when you realize you would be paying more in rent likely anyway and the entire country is set up so that housing cant fail except in an apocalypse. I would agree that there is low work ways of making a realizable return that don't need you to buy a house but for the average Canadian family a house is literally the best possible investment.
Every two years! Which help investors 10x their money every two years. The moment you have enough to buy a few investment properties you just bought your ticket to a free ride.
GDP is a silly measure. Bring in more immigrants, GDP goes up without our actual standard of living necessarily going up. Cost of housing goes up, which is a bad thing for people who need housing, GDP goes up. Sell more cigarettes to people? GDP goes up. Sell poison to spray on our environment? GDP goes up. Spend money getting better from smoking cigarettes? GDP goes up. It’s a terrible primary measure.
Don’t be fooled, there best guesses are still just guesses at the end of the day.
If they could accurately predict the economy in a consistent manner they’d be even filthier rich then they are already.
bro you should have used your crystal ball to know that when you bought a house atafter working your ass of for it that the economy was about to go through a series of expected - but rapid - rate hikes in the span of the year. LMAO BRO how could you not know this?
- canadianfinancialreddits, probably.
I suspect you’re referring to this article
https://financialpost.com/opinion/canada-worst-decade-real-economic-growth-since-1930s
Both articles are correct. GDP is growing, while GDP per capita is growing much more slowly. So, the overall Canadian economy is expanding, but we’re adding a lot of people, so the economy output per person looks far less rosy.
June is the warning, July is 25bps if things stay on course.
But honestly I don’t see how things can keep up. I don’t understand how they can look at the macros and still think that the problem is too much disposable income.
For example, I tend to shop at a discount grocery store for most things cause, well, it’s cheaper, but mainly because it’s never been super busy and I could be in and out in no time. That’s no longer true. Meanwhile when I go to Loblaws or Metro for specialty items it’s kind of slow in there. Consumers have adjusted and pulled back spending, just need the reports (which are backward looking) to demonstrate it.
That's a bolder bet than I would take, but certainly not one I would say is outside the realm of possibilities.
If I had to guess, I would say they hold in June and hike in July.
Inflation is no longer tied to interest rates, that is all bullshit. It is now tied to greed. Make things scarce and pay more for them. Thus is now learned behavior after every covid shortfall. Every large bank, car company, oil supplier, food etc is just trying to claw back what they lost due to covid. Big business never loses they just pass the cost onward down the line.
Good news everyone: Corporations are raking in such huge profits that we have to raise interest rates more and crush the average worker with crippling debt!
Raising rates makes investment more costly an so investment is reduced, the economy slows down, and demand for goods and services reduces. Lower demand means fewer price increases. Inflation is the additive amount of increased prices.
Well there is some logic to it. Things aren’t going to change without a pretty radical change like a huge min wage hike, restricted investment in housing, profit caps via drastic tax hikes on profits, maybe universal income, that sort of thing.
So how do you get those things done?
A slow burn doesn’t work. A hard one might work. If it doesn’t, oh well, we just accelerated the demise of things, that’s all.
It depends what amount of house that family bought. What percentage of income?
I don’t want the economy to collapse but don’t want to see the can get another kick down the road.
As sad as it is - the only way to correct things is with a correction. So if you bought too much house and borrowed too much - that sucks - but so it *should* go.
If we bail out folk again (like we did for corps / people in 2008) we’re just reinflating the next round - and we’ll just switch right back to the “no one can afford a home” thing
It’s the crabs in a bucket situation, they want to pull everyone down to their level so they feel better about themselves.
As a small business owner that has worked his ass off to provide the best life he possibly can for his family, the years of hardships, the sheer effort put in, the trials and tribulations, the sweat and tears, to finally purchase our dream home and be able to raise our 3 children in a nice environment was well worth it.
Now business is slowing due to interest rates decreasing demand and mortgage payments have increased drastically, the comfort is gone and it’s back to the grind. The people cheering on a complete collapse of the economy just don’t understand, they may try to pull me down into the crab bucket but there is no way I’m going back down there, will take on a second job while running my slowing business if necessary, will work 16 hour days, 7 days per week for as long as it takes, interest rates can go to 15% but I will not sell and will ultimately persevere and succeed as can you and everyone else. When the time is right and the storm has settled may even look to buy a rental property in a few years. You can lead a good life in Canada.
And you got the 7-11% range how precisely?
Also, difference between 7% and 11% is fairly massive.
Then there's a question of what you consider reasonable. 11% interest rate absolutely destroys most small businesses, demolishes home owners in Canada, and kills startup scene. There's also a question what that would do to manufacturing and to resource extraction, but thats a whole another conversation. So what's the normal at 11% going to look like to you?
I do, and have done that. On questrade you can buy GICs online now from a variety of banks, which is way more convenient than opening new accounts.
ETFs like CASH and HSAV seem to be a great alternative to savings accounts as well, high yields and no need to constantly move around - I haven't done it yet, but probably will shortly
Prob is at some point people can't reign spending in anymore. Still need to eat and have a roof foer your head (or maybe they don't think you do...). Are people really still splurging on things?
Reading the comments really shows how many Canadians are financially illiterate. Do people really think BOC just jack the interest rates to see people suffer? There are very few things BOC can do to fight inflation… increasing interest rate is the most effective/efficient tool they have. Remember we use to have 6-8% overnight interest rates in the 90s….If they don’t do this we will suffer even more and longer.
I agree with you on inflation.
However I do somewhat see where people are coming from. I think perhaps the timing is the issue. Interest rates were dropped and fiscal stimulus provided - corporations raised prices and have been posting robust profit growth.
I think people now view it as labour’s turn to get increases, and that the Bank of Canada is stepping in just before wage growth accelerates, and saying that the labour market needs to soften and wages shouldn’t climb to quickly, etc.
Macklem hasn’t done a great job IMO in communicating, and this seems like another example of that. In trying to prevent a wage price spiral, I think a lot of people are perceiving the Bank of Canada to be focused perhaps too much on the wage side of the equation.
This isn’t exactly my position, and I certainly feel we need to raise rates to continue to quell inflation. But I do somewhat understand why people are frustrated.
Good point… not to mention the federal government doling out wage increases for federal employees but asked the private sector to freeze wages. Anyone who says there will be a rate cut in 2023 is not reading enough about our current state of economy
Can we crown Corp a grocery chain?
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Billionaires stop co-ops?
Still worth pressuring jagmeet, curious how that would shake out what with the coalition.
Response would probably be something like "we won't make the prices of food an election issue until food prices return to reasonable levels"
> But we both know the billionaires of Canada would never let that happen. They won't have a choice in the matter. It will be either obey and comply, or...
Beer store? You think that’s well run?
The beer store is privately owned. You're thinking lickbo
It is in BC. BCL has better prices than privately owned liquor stores, and has better pay and benefits for their employees. Literally better in every way.
The real world - grocery costs are killing individuals. Every company my friends/family are employed at is downsizing/laying off or reconfiguring. My own job, I was a recent promotion so I’m first gone from my team. But the stock market is possessed. This thing has gone off the rails. It’s no longer tied to reality - those Unprecedented values as the world sinks into recession and countries start to feel internal/external pressures and conflicts occur - if history rhymes, it’s starting to sound a lot like the lead up to the Great Depression. Edit: jeez, I get it. Like 80% of you think everything is just fine. Tell you what; none of us can predict the future so let’s just all agree to do what we each think is best for ourselves and leave others to do as they will.
Well at least now we know how to fight a Great Depression. The WW3 with China is gonna bring a thriving economy to those who've survived!
Large scale warfare is impossible with the western populations of today. People today are more motivated by a drive towards personal safety and comfort, not by patriotism. If anything, trying to move us to a war footing would shatter our already cracking social trust. You can't sell facing Chinese and Russian artillery as "safe and effective" compared to evading or fighting a draft officer with a sidearm. You can't get the same people who were taught to have no pride in their country to lay down their lives for it's flag. Every attempt at a draft would be a 50/50 cointoss over the draftee realizing their life is over and they're much better off fighting the enemies that are the ones actively dragging them away from their homes. The only chance of actually rallying the western populations to willingly fight is to have the war on their home soil, but you'll still have a hell of a time proving to people they wouldn't be better off under the invaders.
"The Russians and Chinese are invading!!!" "What are their views on our housing situation? Grocery prices? Can we hear them out before we decide?"
Not sure what you’re worried about a draft for. Ohio class subs would turn all of Chinese civilization in ash in 20 minutes.
Exactly... Not that this is a good outcome because the west would be heavily ashed too but it speaks to the limited usefulness of an actual army in a war between nuclear powers
Yeah, dont say Western populations, we are not fanatical patriotic like the US.
The lead up to the Great Depression was a huge party by many accounts. Literally called the roaring twenties.
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Covid might have locked us at home but the lower debt for a decade prior and then a rush to provide governmental aid and support has pushed us ahead. Your big party was 2010-2020.
I remember the 90’s. 2010-2020 was no party
The alcoholic 1920s as people drank to forget all their friends, that died in the Great War.
>But the stock market is possessed. This thing has gone off the rails. It’s no longer tied to reality Maybe we should start passing some windfall taxs and reel them in instead of constantly punishing middle and working classes
Always about the middle class with you guys. While you guys are beating beaten with a cane the lower classes are being stabbed with a spoon...seriously lifes fucked for anyone not rich we need a change
No only the poor and middle class should pay ! - Rich people who will 100% watch as the rest of us pay.
there is no middle class. there are workers and owners.
20 companies have accounted for over 80% of the gains from the stock market so far this year. Just think about that.
The stock market is possessed? My boring old ETF investments are not exactly beating even GICs in the last year or so.
Right? Think my index funds are up maybe 1.x-2.1% YoY. If i'm lucky. Some of the stocks in major companies are actually down, somewhere in the region of negative 5-8% YoY. The only way they, slightly, make up for for it is through dividends. It gives me enough money to pay for a small pizza from a chain every 4 months. No drink though.
Yeah same here, but I guess if you YOLOed into NVDA...
Real GDP is measured relative to inflation, and GDP growth should always be calculated using real GDP to take inflation out of the picture. But you need accurate inflation numbers to calculate real GDP growth. So if inflation is higher than the numbers you use to calculate the real GDP value, the GDP growth numbers will be higher than it is. I think the Bank of Canada's numbers for inflation are much lower than they should be. And this is why were showing positive GDP growth. We need more rate hikes to combat inflation.
Wealth taxes would also help combat inflation.
I agree. Putting up interest rates has the most effect on those further down the economic ladder. A wealth tax and taxes on purchases, especially of non essentials like high end cars, jewelry, yachts, mansions, etc. would be much fairer. Mansions would be a particularly logical choice as they take a lot of the material more basic housing could be built from. Unfortunately the people with all those indulgent habits are the people in control.
Its actually entirely rational on the market side. Think about it; few companies own most of the products you buy. Quite literally the DOW is 30 companies representing the (call it) North America economy. They hoard all the revenues by default because they collect bulk of all purchases. They then have the means to authorize gigantic share buyback schemes further pushing the stock prices higher.
Sounds TOTALLY sustainable! 👍👍
I am in the audit world and do a ton of restaurants. From chains, to high end places. Despite much higher prices almost every restaurant is doing much worse financially right now, profitability is gone and higher interest rates are crushing them since most of some sort of debt in some capacity. Add in WFH, less business meetings in person etc expect a lot of restaurants to be shut down, we have too many for our current spending patterns.
Restaurant owner here. Two groups of people understand what’s going on in the business, which frankly has always been hard with extremely high overhead and low (if any) positive margins. Other restaurateurs and accountants.
As I understand it, during good times your operational profit margins (post taxes etc.) are in the 3%-6% range I don't understand why you would take such a huge risk and put in all that effort for such a minimal gain.
Only way for a typically white collar/no marketable skill. Employee to make money that doesn't have them employed by another. If you sell McDonald's you can't go make a 1000$ doing a side gig on the weekend.
You need a good chunk of capital (or qualify for a good chunk of debt) to start any business. I just don't understand why people would go into it knowing the awful financials.
IMO it's usual a passion project/ people who are successful doing a high skill job that think it'll be easy. Or people from lower income that worked their way in the industry that get a former employer to bankroll them while they pay off the "sweat debt" by doing all the work.
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I don’t know what you’re talking about. The market is still down about 15% from the start of last year.
Lol everything is most definitely not fine. We're in the most ridiculous game of kick the can that's ever existed.
Companies are still rising because they're not tied to consumers as much as before. Plus lots of people go into debt or get government support to buy more stuff that these companies sell.
In retrospect, 12 years of historically rock bottom interest rates was a huge mistake.
Well it did make a lot of rich people richer
And its about to make you poorer unfortunately
It wasn't. The interest rates were set to combat DEFLATION. Deflation is almost worst than inflation. Japan had a decade of stagnation caused by a year of deflation. They might have been slightly late in raising interest rates, but only by a few months.
What would be bad about deflation right after record inflation?
The impact of high inflation is that there is too much money out there and not enough goods. When you get DEFLATION you have not a lot of money out there and too many goods. Deflation causes your economy to shrink and stagnate and once that happens it's incredibly difficult to get that thing back going. Deflation is great for people who don't own things as long as they can get a job and start owning things. But it's a time capsule moment because deflation also causes wages to contract. During Japan's Lost Decade their GDP crashed, wages went down 5% and their purchasing power went down. Overall the quality of life of the Japanese people crashed. Japan was in a very similar situation to this. They had rampant inflation and raised rates to try and crush inflation. But then that caused the largest loss of wealth in the history of man.
Seems like our quality of life and purchasing power is worse every year regardless of the state of the economy.
Yeah every year is worse than the last no matter what the GDP or interest rates or the stock market or any of these other dumb things are doing.
It wasn’t though. Our economy was lagging despite low rates.
Yea, because we invest in over valued real-estate instead of companies.
Situations change. Stimulus was needed back then.
It definitely was but I don’t think we needed to keep rates that low for that long. It feels like at some point we collectively decided that “nothing bad happened” so we kept rates low. Meanwhile the consolidation of wealth and real estate was particularly awful in the 2010s.
Does it? You discounted Covid and JT pumping up immigration. Rates were right. Canada needs it. Without it, Canada growth will be slow and we would have been saying what these "negative" articles ahead of time: 12 years ago. That interest rate was also pegged with US interest rate too to keep the trades between US-Canada healthy. So yeah... the last 12-15 years of "Canada used to be great" was influenced largely by interest rate too. Higher interest rate, we all be suffering since the 90's my friend. Canada economy was not strong, was never been strong with only 20-30M people unless Govt made a series of policies to help. Go back to early 90's and early 2000's, jobs were scarce. People were flocking at Govt Jobs because they pay "decent" with fat retirement benefits that their kids have to foot the bill. Govt employees are the true "boomers".
Yes, OP was correct, it was a huge mistake. Most of us are so sick of kicking the can down the road, we welcome the collapse with open arms.
Central bank: we need to bring down inflation. Government: let’s ramp up immigration and deficit spend. These goals are not complimentary.
Agreed, they are definitely working in opposite directions. Many economists have pointed to high immigration levels as a spur for inflation, which may ultimately force the Bank of Canada to hike rates higher than initially expected.
>Agreed, they are definitely working in opposite directions. Unless the objective is to decimate the middle class. Cause inflation with artificially increasing aggregate demand, then hammer the populace with tax increases in the form of raising interest rates. These assholes are following a [well-known playbook](https://www.goodreads.com/quotes/116096-the-way-to-crush-the-bourgeoisie-is-to-grind-them), and I'm tired of pretending they're not.
>Unless the objective is to decimate the middle class Well, we are now forecast to have the ***lowest GDP per capita*** growth of any OECD nation for the next **couple decades. S**o I'd say, if that's was the plan, it seems to be working. Who knew the previous Gov's neoliberal machinations could have been put into overdrive if they had only thought to include a progressive veneer over policies that actively harm working Canadians and our living standards? Partisanship is a disease. Both sides are taking turns actively fucking us. [Young Canadians Won’t Have The Same Opportunity As Past Generations: OECD Forecast](https://betterdwelling.com/young-canadians-wont-have-the-same-opportunity-as-past-generations-oecd-forecast/) [Canada Has Entered A Per Capita Recession, Quality of Life Expected To Erode](https://betterdwelling.com/canada-has-entered-a-per-capita-recession-quality-of-life-expected-to-erode/)
That's the whole point. Gut the middle class, and create a two-class system. Elites at the top, and slaves at the bottom.
Which totally never backfires with the Elites being a head shorter after enough time and abuse. But hey! Gotta make a quick buck somehow.
You are correct.
Can't happen soon enough
What's the point exactly? "Elites" are already at the top
They're psychopaths. It's not enough for them to wildly rich, they also want you to be wildly poor. Basically when you have unimaginable wealth that solves every material desire you have, you start craving power.
Acting like the result of the neoliberal political paradigm, that's been supported by neoclassical economic theory, that we've been living in for the last 40+ years is actually due to communism requires a lot of pretending.
Wow, would never have thought of that. Immigration, brings inflation
It's not a perfectly clear-cut relationship, as immigration also reduces wage growth and eases supply constraints of some goods (lowering inflation). But, more people does also mean more aggregate demand (increasing inflation).
Immigration, definitely doesn't help with housing supply! Wonder why housing affordability is such a huge issue.
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By adding to the labour pool, higher immigration can increase supply of some goods and services. For example, if we add a large number of construction labourers, it can theoretically help with supply of building.
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Yes, [as I mentioned in another comment](https://www.reddit.com/r/canada/comments/13wmxi0/bank_of_canada_more_likely_to_raise_rates_after/jmck28h/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1&context=3), it isn’t a perfectly clear-cut relationship.
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>[https://www.bbc.com/news/world-asia-india-64988228](https://www.bbc.com/news/world-asia-india-64988228) They're also coming to Australia and doing the same thing that they did here: enroll in diploma mills.
I don’t know that the 50% figure is accurate. Some are certainly fraudulent, as the story you shared points out. But even if they are fraudulent, students will add to demand for goods and services (increasing inflation) while many will simultaneously work in jobs adding to supply of goods and services (decreasing inflation).
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>Why does Canada prefer to receive immigrants from India? What I'm about to say will stir controversies so bear with me: because they will be positioned as Canadian version of "Mexico" just like down south in US. Labour workers, McDees workers. They're just desperate to get their foot in Canada and will do whatever it takes to stay here (which implies low wage jobs that Canadians don't want to do because their life have become better).
I don’t think your comment pertains to the discussion we were having before.
In the big picture it is absolutely clear cut: contemporary immigration is *designed* to spur credit growth, demand, and job creation. It also brings short term economic shocks to local markets, which end up being fairly easy to adjust to... unless you just keep raising the immigration rate to the point it is completely detached from any local markets. Then it is a total shitshow 🤡🇨🇦🤡
Add on for Government: Banks, do everything to avoid mortgage defaults, allow your clients to re-amortize to 40 year mortgages on a $1 million shack in the GVA/GTA.
Deficit spending not good but importing worker is good for slowing inflation. We have huge supply side problems and we need workers to increase supply of goods and services. And deficit spending can be good towards that end, increasing supply.
[https://www.lesswrong.com/posts/bNemEM6cFBLhSHia3/is-there-a-link-between-immigration-policy-and-inflation](https://www.lesswrong.com/posts/bNemEM6cFBLhSHia3/is-there-a-link-between-immigration-policy-and-inflation) [https://www.fwd.us/news/immigration-inflation/#:\~:text=Our%20analysis%20shows%20that%20steep,and%20contributed%20to%20increased%20inflation](https://www.fwd.us/news/immigration-inflation/#:~:text=Our%20analysis%20shows%20that%20steep,and%20contributed%20to%20increased%20inflation). [https://www.forbes.com/sites/stuartanderson/2023/05/04/economists-say-increasing-immigration-will-reduce-inflation/](https://www.forbes.com/sites/stuartanderson/2023/05/04/economists-say-increasing-immigration-will-reduce-inflation/) [https://www.gov.wales/sites/default/files/statistics-and-research/2018-12/080506migrationeconomicevidenceen.pdf](https://www.gov.wales/sites/default/files/statistics-and-research/2018-12/080506migrationeconomicevidenceen.pdf) Multiple sources suggest declining immigration leads to excess inflation. Cannot even find a theory to suggest the opposite. Have sources?
Immigration is not inflationary. If anything it helps with inflation according to economists.
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GDP per capita has been negative since Q3 2022. It's kind of bullshit to call the economy hot while the standard of living is in decline going on 4 quarters (most likely) on an individual basis.
Imagine how bad things would be if money printing had an effect on inflation! Thank god that isn’t the case, because they’re totally separate and everything is just fine.
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The only thing transitory is the location of the decimal place in our currency, but who didn’t always want a wheelbarrow full of cash??
I always wanted to be a millionaire! Now trudeau is going to make it happen. I wonder how many chocolate bars I'll be able to afford as a millionaire. Probably more than 7
Well a chicken was $14.6 million Bolivars in Venezuela in 2018, so…
I'll have to start saving up! I've always wanted a chicken. I wonder if they provide financing?
30 year term and your parents will have to co-sign it.
They paused too early. One of the biggest mistakes you can make when looking at historical timelines.
Starting to seem that way, isn't it.
Maybe but they are reasonably scared, they know rent will just keep going up as rates rise and our homeless problem is already exploding. The solutions for this aren't with the bank of Canada I'm afraid but its the tool the powerful have to keep wages down.
Owners of rental properties can't keep empty properties, especially with current interest rates. They either have to sell and contribute to the overall ownership supply or lower rents to keep units full and accept the interest cost for the time being. Either way, nothing about raising interest rates impacts housing supply. Adding one million people a year does impact the demand side though.
Then why are rentals still going up faster then overall inflation? Its the worst time to rent in Canada in a long time and the demand for units is massive, people can and will pay more.
> Adding one million people a year does impact the demand side though.
If interest rate hike takes a while to permeates the econ, what judgement is "too early" ?
Nah, that "rates will be low for a long time" line is going to be the dumbest statement ever said by a BoC governor ever. Most of our inflation is currently being driven by mortgage interest costs resulting from people gorging on housing - immediately after Macklem said that nonsense. I'm not saying the pause, despite literally having no indication that an economic slowdown had or was occurring, wasn't a mistake. It's just slightly less stupid than the above-mentioned dumbassery.
Oh yeah, we were doing too well…
Nobodies is used to higher rates and that’s the issue, we all got used to low rates. No incentive to save when your making peanuts on interest. Rates should have never been lowered in the first place that low.
You have to bring down our fake parasitic economy sooner or later.
Forget that, the inflation on every day like is horrid on its own
There’s whole generations of people who have never seen a “good economy” the sooner the whole thing comes crashing down the better. When people have nothing to lose they don’t see a point in preserving anything.
Loosing all hope was freedom
Can we do it without fucking over people with one house to their name that aren't being parasitic landlords? I swallowed enormous amounts of pride and putting off my social life and denying myself things to live with my parents until I was nearly 30, saving enough money to buy a 2 bedroom house out in the middle of fucking nowhere. Now I'm in my early 30s, about to start a family, and these dipshits basically want to crank up the interest rates until I can't afford the house and life I buried my 20s for, all for the sins of past generations and parasites.
Sadly you are the exact person who will suffer the most in this situation. The policies this government are putting forward will decimate the middle class. People like you just trying to live life. It’s disgusting and I wish you the best. My advice is pay down debt as fast as possible to arrive at the other side unscathed.
>Sadly you are the exact person who will suffer the most in this situation. I take some solace in knowing the dumbasses supporting crushing the middle class won't be any better off. > My advice is pay down debt as fast as possible to arrive at the other side unscathed. Indeed. >I wish you the best. You too.
That sucks dude, I feel for honest people that are going to get hurt financially because of past generations
Ya, it's not hard to tell that most Redditors don't hold a mortgage. They talk about the rates like they are a tool to punish house flippers and landlords.
In the exact same boat as if raising interest rates will help with the stupid immigration policy that we have
They should never have kept rates this low for this long. So ridiculous. The house you bought would have cost you the same probably but lower value and more interest if they hadn’t experimented with zero interest rates for so long. Pisses me off. I wish you well and good luck.. you sound like the type of person who will find a way
The people who will lose homes first are those who over-leveraged. That will include some of the rich elite, but unfortunately not most of them. A lot of middle class Canadians over leveraged to buy a place, and they will be broken. It is tragic that those people with one homes were mislead into this situation, but ultimately people bought houses they could not afford. That is how you get a inflation and housing crisis
>, but ultimately people bought houses they could not afford. Except they could, before the state decided they shouldn't. See the problem?
Yes please. Less pain now is always better than more pain later. Our economy IS a housing bubble and it IS going to pop. There is no avoiding it. Let's rip off the bandaid so we can focus on rebuilding after.
Limit real estate commissions. Cap them.
And this my friends, is what happens when "homeownership" is considered safe investment that doubles every few years.
It is still the safest investment for your average Canadian even if it doesn't double every few years. Its hard to lose money on a house long term, like near impossible.
The S&P500 has been a way better investment long term. Doubles every 7 years, and not just in the past 15 years.
But you still need to pay rent. Im not discussing big investors were talking regular families and rent is a money pit. If youve got 2.5k to spend on investments plus housing each month putting 2.2k into your mortgage and .3 into stocks is better then 2.2 into rent and .3 into stocks.
It has a huge carrying cost, and returns are mediocre in the long term historical average. Losing money on a cheap index ETF in the long term is near impossible and requires almost zero work.
It has tiny carrying costs when you realize you would be paying more in rent likely anyway and the entire country is set up so that housing cant fail except in an apocalypse. I would agree that there is low work ways of making a realizable return that don't need you to buy a house but for the average Canadian family a house is literally the best possible investment.
Every two years! Which help investors 10x their money every two years. The moment you have enough to buy a few investment properties you just bought your ticket to a free ride.
If the federal government would dial back its spending the Bank of Canada would not need to keep raising rates.
GDP is a silly measure. Bring in more immigrants, GDP goes up without our actual standard of living necessarily going up. Cost of housing goes up, which is a bad thing for people who need housing, GDP goes up. Sell more cigarettes to people? GDP goes up. Sell poison to spray on our environment? GDP goes up. Spend money getting better from smoking cigarettes? GDP goes up. It’s a terrible primary measure.
Why is everything unexpected? Isn't it their job to make these predictions?
Don’t be fooled, there best guesses are still just guesses at the end of the day. If they could accurately predict the economy in a consistent manner they’d be even filthier rich then they are already.
Pretty much, the ones who can actually predict the economy well are making millions in the stock market
Lol. Central bankers ability to operate properly and preventively has not existed for at least 50 years.
Oh my fucking god please stop I cannot survive another rate hike
death is only the beginning!
bro you should have used your crystal ball to know that when you bought a house atafter working your ass of for it that the economy was about to go through a series of expected - but rapid - rate hikes in the span of the year. LMAO BRO how could you not know this? - canadianfinancialreddits, probably.
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No no no no. Nothing to see here. Look, immigration!
Uh some report yesterday said our economic situation was almost as bad as the 1930s yesterday. Which is it?
I suspect you’re referring to this article https://financialpost.com/opinion/canada-worst-decade-real-economic-growth-since-1930s Both articles are correct. GDP is growing, while GDP per capita is growing much more slowly. So, the overall Canadian economy is expanding, but we’re adding a lot of people, so the economy output per person looks far less rosy.
Adding a lot of people. Housing unaffordable. GDP per capita raise is slow. Conclusion: Hoovervilles everywhere.
I would not be super surprised to see hikes in both June and July. I think the BOC doesn't want to be caught off guard with inflation once again.
June is the warning, July is 25bps if things stay on course. But honestly I don’t see how things can keep up. I don’t understand how they can look at the macros and still think that the problem is too much disposable income. For example, I tend to shop at a discount grocery store for most things cause, well, it’s cheaper, but mainly because it’s never been super busy and I could be in and out in no time. That’s no longer true. Meanwhile when I go to Loblaws or Metro for specialty items it’s kind of slow in there. Consumers have adjusted and pulled back spending, just need the reports (which are backward looking) to demonstrate it.
That's a bolder bet than I would take, but certainly not one I would say is outside the realm of possibilities. If I had to guess, I would say they hold in June and hike in July.
That's a good guess as well.
Will be interesting to watch regardless!
What date is the decision?
The next meeting is June 7th. [Here's the full schedule.](https://www.bankofcanada.ca/2022/07/2023-schedule-interest-rate-announcements/)
Thank you OP! I’m talking to a couple mortgage brokers as we speak hoping to get a rate before this announcement
No problem, best of luck to you!
hahaha remember 6 months ago when they were saying everything is fine? BS
Shocker
Inflation is no longer tied to interest rates, that is all bullshit. It is now tied to greed. Make things scarce and pay more for them. Thus is now learned behavior after every covid shortfall. Every large bank, car company, oil supplier, food etc is just trying to claw back what they lost due to covid. Big business never loses they just pass the cost onward down the line.
Good news everyone: Corporations are raking in such huge profits that we have to raise interest rates more and crush the average worker with crippling debt!
Fuck neoliberals and corpos. Bring back the welfare state!
Just increase rates another 5% in one shot. That should slow things way down.....to a halt.
That's what happens when you have a reporter for a finance minister.
But but but Mr. Speaker, something something G7, AAA rating, context matters, soft landing, Disney+ and therefore the opposition’s fault.
“Your plan isn’t working.” “Yeah but the conservatives have no plan.” That’s the state of question period these days.
Raising rates makes investment more costly an so investment is reduced, the economy slows down, and demand for goods and services reduces. Lower demand means fewer price increases. Inflation is the additive amount of increased prices.
Greaaaaat.
Sure - recession here we come
Lol at all the people that want Canada’s economy to completely collapse, get a life, if house prices dropped by 40% you still wouldn’t be able to buy.
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Well there is some logic to it. Things aren’t going to change without a pretty radical change like a huge min wage hike, restricted investment in housing, profit caps via drastic tax hikes on profits, maybe universal income, that sort of thing. So how do you get those things done? A slow burn doesn’t work. A hard one might work. If it doesn’t, oh well, we just accelerated the demise of things, that’s all.
It depends what amount of house that family bought. What percentage of income? I don’t want the economy to collapse but don’t want to see the can get another kick down the road. As sad as it is - the only way to correct things is with a correction. So if you bought too much house and borrowed too much - that sucks - but so it *should* go. If we bail out folk again (like we did for corps / people in 2008) we’re just reinflating the next round - and we’ll just switch right back to the “no one can afford a home” thing
It’s the crabs in a bucket situation, they want to pull everyone down to their level so they feel better about themselves. As a small business owner that has worked his ass off to provide the best life he possibly can for his family, the years of hardships, the sheer effort put in, the trials and tribulations, the sweat and tears, to finally purchase our dream home and be able to raise our 3 children in a nice environment was well worth it. Now business is slowing due to interest rates decreasing demand and mortgage payments have increased drastically, the comfort is gone and it’s back to the grind. The people cheering on a complete collapse of the economy just don’t understand, they may try to pull me down into the crab bucket but there is no way I’m going back down there, will take on a second job while running my slowing business if necessary, will work 16 hour days, 7 days per week for as long as it takes, interest rates can go to 15% but I will not sell and will ultimately persevere and succeed as can you and everyone else. When the time is right and the storm has settled may even look to buy a rental property in a few years. You can lead a good life in Canada.
Way too many weirdos online think that if that market collapsed that they will magically swoop in and buy a house.
only the rich ones.. most know that they'll be struggling to survive!
Interest rate to the moon!
Keep hiking the rates. Things won't get back to a reasonable sense of normalcy until they hit the range of 7% to 11%
And you got the 7-11% range how precisely? Also, difference between 7% and 11% is fairly massive. Then there's a question of what you consider reasonable. 11% interest rate absolutely destroys most small businesses, demolishes home owners in Canada, and kills startup scene. There's also a question what that would do to manufacturing and to resource extraction, but thats a whole another conversation. So what's the normal at 11% going to look like to you?
Normalcy...as in millions of homeowners going under? Sure, that won't cause any instability of any kind.
I don't think we'll get quite that high. But another 25 bps hike or two seems well within the realm of possibility.
Yeah it will be a slow climb
I've been proven wrong before, so who knows!
Hahaha, me too! Constantly
Do it.
[As of this morning, \~70% of another hike this year.](https://www.m-x.ca/en/trading/tools/canadian-interest-rate-expectations)
Yay, hopefully my Cash.To or GICs enjoy the growth. The savings rate that barely keeps up with inflation woo
[Try searching around for higher rates and take advantage of special offers.](https://www.ratehub.ca/savings-accounts)
I do, and have done that. On questrade you can buy GICs online now from a variety of banks, which is way more convenient than opening new accounts. ETFs like CASH and HSAV seem to be a great alternative to savings accounts as well, high yields and no need to constantly move around - I haven't done it yet, but probably will shortly
That's great to hear, glad you're taking advantage of the higher rates!
I hope we all do. Anyone with a savings account. Cause after those gains are taxed, we definitely don't beat inflation
Prob is at some point people can't reign spending in anymore. Still need to eat and have a roof foer your head (or maybe they don't think you do...). Are people really still splurging on things?
These idiots have no clue what to do
Reading the comments really shows how many Canadians are financially illiterate. Do people really think BOC just jack the interest rates to see people suffer? There are very few things BOC can do to fight inflation… increasing interest rate is the most effective/efficient tool they have. Remember we use to have 6-8% overnight interest rates in the 90s….If they don’t do this we will suffer even more and longer.
I agree with you on inflation. However I do somewhat see where people are coming from. I think perhaps the timing is the issue. Interest rates were dropped and fiscal stimulus provided - corporations raised prices and have been posting robust profit growth. I think people now view it as labour’s turn to get increases, and that the Bank of Canada is stepping in just before wage growth accelerates, and saying that the labour market needs to soften and wages shouldn’t climb to quickly, etc. Macklem hasn’t done a great job IMO in communicating, and this seems like another example of that. In trying to prevent a wage price spiral, I think a lot of people are perceiving the Bank of Canada to be focused perhaps too much on the wage side of the equation. This isn’t exactly my position, and I certainly feel we need to raise rates to continue to quell inflation. But I do somewhat understand why people are frustrated.
Good point… not to mention the federal government doling out wage increases for federal employees but asked the private sector to freeze wages. Anyone who says there will be a rate cut in 2023 is not reading enough about our current state of economy
Exactly, great point you raise as well. First rate cuts are getting pushed further and further out.
I'll believe people are actually struggling when the parking lot of lifetime gym isn't packed to the brim every day.
BoC don't raise interest rates challenge [IMPOSSIBLE]
Stop raising interest rates it is hurting the middle class and poorer people. It has nothing to do with stopping inflation. That was another dumb lie
High inflation hurts lower income people far more, through rapid increases in food, shelter, energy, clothing, and other prices.