Jul 05, 2022
By Bob Komsic
It adds that the central bank has had a zero per cent success rate with this approach, noting that a 5.7 per cent drop in the inflation rate has happened three times over the last 60 years, each time after big rate hikes and accompanied by a recession.
The CCPA says it’s time for a new policy on inflation.
It says the Bank of Canada could potentially reduce the risk of sending the economy into a recession if it adjusts its target inflation rate to four per cent.
This study comes a day after the Bank of Canada released two quarterly surveys which revealed consumers and businesses expect inflation to stay high for several years.
(The Canadian Press)