Episodes
Tuesday Jan 31, 2023
The latest Bank of Canada interest rate decision – Don Drummond, Economist
Tuesday Jan 31, 2023
Tuesday Jan 31, 2023
The Bank of Canada has raised their benchmark interest rate by a quarter of a percentage point to 4.5% - the highest it’s been since 2007. This is the eighth consecutive interest rate hike for the Bank of Canada, but Governor Tiff Macklem signalled that it might be the last hike of the cycle. One of the most significant announcements by the Bank of Canada in their policy report is that they are confident in bringing inflation down to the target of 2% by 2024. We’re joined today by renowned economist Don Drummond to unpack if this timeline is advantageous. Also, to see what this 25-basis point rate hike means for housing, markets, consumer spending and the real economy. Don has held several senior roles at the Federal Department of Finance, including Associate Deputy Minister, where he was responsible for economic analysis, fiscal and tax policies. He later served as Senior Vice President and Chief Economist at TD Bank and is currently Fellow-in-Residence at the C.D. Howe Institute. One key takeaway today that Don shares with host Pamela Ritchie are that inflation has peaked and should continue dropping under 6% year-over-year as we get into this spring. Stay tuned for all of this and more.
Recorded on January 26, 2023.
Transcript (PDF): https://www.fidelity.ca/content/dam/fidelity/en/documents/transcripts/transcript-podcast-fidelityconnects-drummond-jan26-23.pdf
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