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Economics question...

Could someone please explain to me why, if prices on everything go up due to inflation and people are having trouble affording the things they need, why does the gov't raise the interest rates and tell us it is to help curb inflation? Seems to me by raising the interest rates, they are adding to the list of things we can't afford.

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thewindupbirdchronicles · 46-50, M

Well in Canada, not sure where you are, the modus operandi of the bank of canada is supposed to be independent of government. I am told we have lower inflation than some, but the bank is rising interest beyond what some countries banks are doing. I expect that is if a home here costs close to a million dollars now, they know their limits.

Now coincidentally, we have a provincial government legislating education workers back to work, who make little compared to some. They have a union, and the provincial goverment has decided, we don't want to deal with you, we will make your right of association and strike illegal. We will go further and impose a contract, and while we know the court won't agree with us, we'll invoke a clause in the charter, notwithstanding. Pathetic excuse.

Ryderbike

@thewindupbirdchronicles I agree but then ford is a right winger.