The Bank of Canada did well to pause successive interest rate hikes, a financial expert believes.
“We went from 0.25% last year to 4.25%, it’s one of the biggest increases in such a short time,” Simon Brière, senior strategist at RJ O, told QUB radio on Thursday. ‘Brian.
Starting from the premise that these rate increases take time before being felt on the economy, the financial expert dared to make a comparison with pot muffins, the effect of which is only felt when abused.
“It’s a bit like a young adult who decides to try a pot muffin. […] The Bank of Canada has just eaten its eighth pot muffin”, he extrapolated in reference to the eighth increase decided by the Central Bank.
Mr. Brière admits to the microphone of Philippe-Vincent Foisy that Canadians have cultivated somewhat harmful financial habits, in particular because of the low interest rate, and they risk getting up tomorrow with a hangover.
“We have a difficult economic environment,” warned Mr. Brière, anticipating a possible recession because of persistent inflation, but without saying that the Canadian economy is heading for a crash.