A new report by CIBC Capital Markets, released June 12, says governments could be doing more in the battle against inflation by keeping a tighter grip on their wallets.
Across the country, Canadians are struggling with rising costs in everything from groceries to rent.
But the report said loose spending by governments is boosting growth, at the same time that the Bank of Canada is trying to reduce growth by raising interest rates.
Last week, the Bank of Canada raised its rate by a quarter of a percent in an effort to cool inflation, which is currently running around 4.4 percent. Inflation has dropped from last year but is still causing pain. The report warns that more rate hikes are probably coming in a further effort to slow inflation. That could make life more painful for people renewing their mortgages, because rising interest rates mean they’ll have to pay more….