October 29, 2021
Late to figure out what was obvious to many Canadians, the Bank of Canada increasingly appears to be both out-of-touch and ideological
Here’s what the Bank of Canada was saying about inflation in early June of 2021:
“Bank of Canada policy makers aren’t worried about the recent run up of inflation they believe is being driven largely by temporary factors, according to a top official.
The pick-up in Canadian inflation to above 3 per cent was one of the key issues discussed by policy makers in deliberations this week, Deputy Governor Tim Lane said in a speech after the central bank’s stand-pat decision Wednesday.
Officials agreed the higher-than-expected inflation is largely due to unfavorable year-ago comparisons, Lane said on Thursday, with continued excess supply expected to put downward pressure on prices once the base effects abate.
“These base-year effects are, by definition, transitory — they will not persist beyond the next few months,” Lane said in prepared remarks. “What will persist until we see a complete recovery is the underlying slack in the economy.”
“This slack will continue to put downward pressure on inflation as these base-year effects fade,” he said.”
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