Sal Rahman on Nostr: I will never vote for a politician who attacks the BoC for raising interest rates in ...

I will never vote for a politician who attacks the BoC for raising interest rates in the face of higher than 2% inflation rate.

The Bank of Canada has one job: keep inflation at 2%.

They only have one tool for the job: monetary policy, which includes the overnight lending rate.

Yelling at the Bank of Canada for interest rates is like yelling at a tree for having its leaves fall during autumn. They can't help it.

It's also the government's job to manage inflation rate, by keeping a close eye on the economy.

Several things that lead to inflation that we're seeing today:

- high housing costs
- supply-chain issues
- uncontrolled immigration, even in the face of inflation

Inflation doesn't only mean more money in circulation; it also means market can't meet demand.

So combined with supply-chain issues, red tapes behind housing starts, and high immigration all lead to the inflation that we are seeing today.

Governments should have been on top of this.

#canpoli