Author: Canada Vancouver Sailing Farm – Maple news Talk
According to the “Toronto Sun” reported on May 3rd, the Bank of Canada said on the same day that if the level of demand in the domestic market continues to exceed its supply level, it may further push up inflation.
Canadian inflation is at its highest level in nearly 31 years and more than three times the government’s expected target. The central bank has therefore had to keep raising its benchmark interest rate to ease the crisis of an overheating economy and try to control domestic demand to avoid fuelling inflation by exceeding its supply limit.
The head of the Bank of Canada pointed out that the current economic performance has been well above the bank’s benchmark control interest rate range of 1% to 3% and the inflation rate target of 2%. Disruptions in global supply chains and high commodity prices are the main factors driving the country’s inflation rate above 7%.
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