The Bank of Canada’s hefty rate hikes are finally bearing fruit, as higher borrowing costs have caused a pullback in business investment and consumer spending, making way for lower inflation in 2024.

  • blindsight@beehaw.org
    link
    fedilink
    arrow-up
    13
    ·
    11 months ago

    Austerity is government spending, not interest rates. They’re decoupled from each other.

    Agreed, that we don’t have sufficient support, for lower-income and homeless Canadians, in particular. But the central bank did largely the right thing (I cry into my variable-rate mortgage). Interest rates needed to go up to chill inflation, and it’s possible the BoC may have threaded the needle on that perfectly.

    • tarsn@lemmy.ca
      link
      fedilink
      arrow-up
      8
      arrow-down
      2
      ·
      11 months ago

      Austerity is still coming when the Cons get in next election cycle

      • GrindingGears@lemmy.ca
        link
        fedilink
        arrow-up
        6
        ·
        11 months ago

        No that’s not austerity, that’s spending slashed because they need to do wholesale money transfers from public coffers to private hands. CONServative.