BoC can lower inflation by lowering the BoC rate
Shelter inflation of 6.4% is an outsized component in the Canadian CPI. The shelter inflation is a reflection of the rising mortgage interest payment when fixed rate mortgages are renewed.
So when the BoC rate comes down, which will drop the fixed mortgage rate, in turn, it will lessen the mortgage interest expense increase when fixed mortgages are renewal. This will lower the shelter cost and thus lower the CPI.
Lower the BoC rate will lower the CPI!
Do we have a magic formula to lower inflation in Canada!!!
Lower the BoC rate will lower the CPI!
Do we have a magic formula to lower inflation in Canada!!!
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