加央行行长：加经济过热，六一很可能再加息两码 (0.5%)；如果需要的话, 加息目标需要超过设定目标中性利率2－3%但不会高于7% 或8% (所以目标利率可能达到6%, 到那时，房贷利率有可能过10%)

[GlobeCitizen]

Canada's economy 'overheating,' higher rates needed -Macklem​

Author of the article:

Reuters

Julie Gordon and Steve Scherer

Publishing date:
Apr 27, 2022 • 1 hour ago • 1 minute read •
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Article content​

OTTAWA — Canada’s economy is overheating, creating domestic inflationary pressures, and higher interest rates are needed to cool things down, the head of the Bank of Canada said on Wednesday.

Get ready for rates to rise 'very, very quickly:' Benjamin Tal






Governor Tiff Macklem, testifying to a Senate committee, said interest rates may need to go above the neutral rate range – currently estimated to be between 2% and 3% – for a period of time to get inflation back to target.

“If you boil it down, the economy is overheating. That’s creating domestic inflationary pressures. We need to cool growth, to cool inflation,” Macklem said.

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“It’s going to be delicate,” he added. “But we do need to raise interest rates to moderate that spending growth and get inflation back to target.”

The Bank of Canada increased interest rates by a rare 50 basis points earlier this month, and Macklem has signaled that the central bank will likely consider a second oversized hike at its next meeting, on June 1.

How high rates go will depend on how the economy responds to increases and on the inflation outlook, Macklem reiterated.

“It’s possible that we may have to go above the neutral rate for a period of time to return inflation to target, but it’s a bit above 2 or 3%, it’s not 7% or 8%,” he said, when pressed on whether rates could return to levels seen decades ago.

“That reflects the fact that inflation expectations are well anchored,” he added.

Canada’s inflation rate hit a 31-year high of 6.7% in March. (Reporting by Julie Gordon in Ottawa Editing by Chris Reese and Leslie Adler)

Canada's economy 'overheating,' higher rates needed -Macklem

OTTAWA — Canada’s economy is overheating, creating domestic inflationary pressures, and higher interest rates are needed to cool things down, the head of the Bank o…

financialpost.com

 

[GlobeCitizen]

IMO, "overheating economy" is a laughing stock, a convenient disguise for their over one decade of mistakes of QE, ideological-centered populist policies and irresponsible spending at the cost of future generations. Now making things worse is the war in Ukraine and Covid pandemic ....

出来混迟早是要还的!

 

[ccc]

这样的话，房贷超8%是完全可能了。

 

[Koodo]

狼终于要来了

 

[welcomelm]

Fool me once

 

[GlobeCitizen]

If America is a mirror for Canada, now things become even worse, making the thing a total mess for FED (persistently high inflation versus a slow economic growth):

 

[xiaoxiaosu]

是两码还是两帕？两码是.5%, 两帕是2%， 这可是4倍差。

 

[GlobeCitizen]

两码. Thanks

 

[eclipse]

房贷利率10%太好了，那时土豆欠的国债利率是多少？

 

[RareEarth]

If America is a mirror for Canada, now things become even worse, making the thing a total mess for FED (persistently high inflation versus a slow economic growth):

浏览附件1040334

央行在炒作降息预期。 最后如何要看经济。如果经济快速放缓，那就没有必要，也不可能把利息升的太高。

 

[xiaoxiaosu]

两码. Thanks

这也够吓人的。

 

[贵圈]

为什么华尔街认为美国经济能持续高涨？ 我怎么就没理解。

除了后疫情的报复性反弹。为什么美国有乐观预测？

加拿大经济又能乐观到哪里？

靠资源？

 

[stevenw]

US 2008 房事破灭 on 6%

 

[MAP2012]

If America is a mirror for Canada, now things become even worse, making the thing a total mess for FED (persistently high inflation versus a slow economic growth):

浏览附件1040334

这种情况比较糟糕，滞涨

 

[GlobeCitizen]

In the past, everyone wanted free money, low borrowing rates including mortgage rate, let alone politicians who need votes. There is no exception for any political party candidates or incumbents. The solution is simple, printing money (Endless QE) regardless what the state of economy. Donald Trump printed more money than ever before even though the economy was strong at the time and there was no war, no Covid; Biden have printed even more money...

Now, there is most likely a persistent high inflation (may be years going forward). If economy is "overheating," raising rates is a straightforward solution, but how about a slowed economy, or a contracted economy or a recession?

which one is important for politicians as they are all populists regardless of which party they belong: is combating inflation a more important thing than sustaining a growing economy? Votes will be a deciding effect ....Democracy? populist? Or is it maybe just a systemic fault.

Anyhow, it is and will always be a very fluent situation, stay tune!