Reply To: Bank of Canada Hikes Rates 50 bps to Highest Level Since 2008


The Bank of Canada senior deputy governor Carolyn Rogers

higher rates are starting to work to slow the economy and tame inflation
risk of a trigger that may affect financial stability has increased, sites high household that an elevated house prices as long-standing vulnerabilities
we have a long way to go to get inflation back to target
adjustment will be painful
we are not expecting a severe economic downturn with the kind of large job losses typical of past recessions
there are good reasons to believe system as a whole will be able to whether this period of stress and remained resilient
we need lower house prices to restore balance to housing market, this could add stress for people who bought property recently with a variable rate mortgage
Bank research paper says that if rates go up another 50 basis points by May 2023, total number of variable-rate fixed payment mortgages hitting trigger point could rise to 65% (or 17% of all mortgages from 50% now)