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“The BoC is Done” and Other Works of Fiction
Inflation’s cooling, they say. It’s only gasoline and mortgage interest costs that are driving it, they say. The government’s (rather unclear) ‘plan’ is working, they say. The Bank of Canada is obviously done raising rates, they say. All of which is complete, utter, rubbish. Another ripping inflation report put an exclamation point behind rebutting each of these claims. The Bank of Canada has a severe credibility problem on its hands amid the high risk that further tightening may yet be required. I’ll come back to this later in the note. First the numbers and details and then I’ll offer BoC opinions. ... (full story)