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  • Jean-François Mezeijfmezei@cosocial.ca
    Oct 30, 2026, 3:15 AM

    @johnefrancis In the past, currencies were fixed and interest rates influenced by government. Failure to act to curb inflation lead to runaway inflation such as in the 1970s. In 1980, Bank of Canada got totally independent setting of rates. (so politicians could no longer be blamed for high interest rates).

    Currencies were also made free floating to adapt to balance of payments.

    Bank of .CA doesn't just look at inflation sats. They also look at value of CAD and many other metrics.

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  • John Francis 🇨🇦🦫🍁🫎johnefrancis@cosocial.ca
    Oct 30, 2026, 1:32 PM

    @jfmezei sure, they look at lots of stuff for forecasting purposes. But their monetary policy mandate is ONLY inflation control...unlike the US fed, they don't have discretion to say "sure, inflation is a bit higher than our 1-3% target, but unemployment is very high, so we will not raise rates to target inflation until unemployment is close to our mandated unemployment target"

    IMO, the BoC does a very good job following its orders from the govt, it just has the wrong orders.

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  • Jean-François Mezeijfmezei@cosocial.ca
    Oct 30, 2026, 6:30 PM

    @johnefrancis I think BoC has a lot of wiggle room in how it interprets the economy. But there are limits. They can tolerate a bit of inflation if raising rates would hurt employment tio much but there are limits. And the inflation caused by Trunp is way above thise limits.

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