TD chief economist Beata Caranci said inflation today might feel especially challenging because Canadians have been shielded from inflation volatility for decades.
As Canadians face a double whammy of skyrocketing inflation and the largest interest rate hike seen in 24 years, one expert is warning that prices won't be coming down anytime soon.
The Bank of Canada signaled a more aggressive approach to bringing skyrocketing inflation back under control as it announced the largest single rate increase since August 1998.
Firm says it now expects the aggregate price of a home in Ottawa will be up 10 per cent in the fourth quarter of 2022 compared with a year earlier, down from its previous forecast of 13 per cent.
Economists attribute much of the cooling to rising interest and mortgage rates.
High household debt and elevated housing prices have become bigger vulnerabilities in the past year, but the economy can handle the rising interest rates needed to tame inflation, central bank says.
Bank of Montreal chief economist Doug Porter said it's highly unlikely Canadians are in for a double-digit, '80s-style interest rate shock any time soon.
As the world copes with the impacts of the Russian invasion of Ukraine, central banks around the world are responding to record-high inflation with adjusted interest rates.
He wouldn't rule out pushing rates beyond 50 basis points all in one sitting, after moving to lift rates by that amount to one per cent just last week, but said he "is prepared to be as forceful as…
Bank's latest Business Outlook Survey found that more than two-thirds of businesses anticipate inflation will be above three per cent, on average, over the next two years.