The Bank of Canada today reduced its target for the overnight rate to 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is continuing its policy of balance sheet normalization.
The policy rate is sitting right around where it was prior to 2008. In the years that followed, the economy went nuts, and a big part of that insanity was masked by the essentially free money capital was able to get from lenders. Venture Capitalists managed to gain immense influence over so much of our daily lives, and employers masked their ever growing share of the pie with ever cheaper and lower quality consumer goods that got cheaper relative to overall inflation.
Rather than fix the underlying problems, they’re signalling that they want to go back to sweeping them under the rug.
The policy rate is sitting right around where it was prior to 2008. In the years that followed, the economy went nuts, and a big part of that insanity was masked by the essentially free money capital was able to get from lenders. Venture Capitalists managed to gain immense influence over so much of our daily lives, and employers masked their ever growing share of the pie with ever cheaper and lower quality consumer goods that got cheaper relative to overall inflation.
Rather than fix the underlying problems, they’re signalling that they want to go back to sweeping them under the rug.
Fun.