News Analysis
OTTAWA—As widely expected, the Bank of Canada raised its key rate by 75 basis points (0.75 percent) to 3.25 percent on Sept. 7 to continue dampening demand to fight inflation. Additionally, it signalled that more rate hikes are coming, which is leading some economists to forecast an impending recession and not the “soft landing” the central bank projected in July.
“The issue about whether it can pull off a soft landing, I think that issue is secondary now,” Jean-Paul Lam, economics professor at the University of Waterloo and former BoC assistant chief economist, told The Epoch Times.
He added that the BoC is not being explicit about causing “some pain” to businesses and households like U.S. Federal Reserve chair Jerome Powell did in his speech at Jackson Hole in late August….