The Bank of Canada is expected to conclude a historic year marked by high inflation and aggressive monetary policy tightening with one more interest rate hike on Wednesday.
Forecasters anticipate the central bank will raise its key interest rate, which is currently at 3.75 per cent, by either a quarter or half a percentage point next week.Even the smaller hike would bring the interest rate to the highest it's been since 2008.
"We are getting closer to the end of this tightening phase but we're not there yet," Macklem said in a news conference on Oct. 26. Rogers cited new research from the central bank that found half of variable-rate mortgages have now hit the "trigger rate," whereby mortgage holders' monthly payments only cover interest charges.
"Everybody knows that it takes some time for these interest rate increases to take effect," Gordon said. Speaking at a conference in Ottawa hosted by Western University's Ivey Business School, the former governor said today's economy is more sensitive to interest rates than it was 10 years ago because of high debt levels.
If the economy is indeed slowing, though, it hasn't showed up in labour data yet. Canada's unemployment rate in November was 5.1, signalling a still hot labour market.
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