Bank of Canada Urged to Maintain High Rates to Ensure Inflation Comes Down, Despite Economic Pain
• Interest rates may now be high enough to tame inflation, but Bank of Canada needs to “stay the course” to ensure prices don’t surge again • Inflation eats away at fabric of society; restoring price stability is imperative • Monetary policy working as intended - economy weakening, demand cooling, putting downward pressure on inflation • Consumer confidence very low despite strong labor market; high inflation eroding affordability and fairness • Hopeful high interest rates and recession not needed like 1970s to control inflation due to more forceful action by central bank