Photographer: Hermes Rivera
“”Kids nowadays just don’t know the value of money” is a classic parental complaint.
A decade of low interest rates has made that curmudgeonly folk wisdom truer than ever. And it’s not just kids,” wrote Don Pittis for CBC News on July 11, 2017.
Pittis continued, “Now that Bank of Canada governor Stephen Poloz has all but announced he is raising interest rates this week, the number of otherwise moderate voices that seem angry may be evidence how true that chestnut is.
“When you are driving towards a red stoplight, you ease up on the accelerator well before you get there instead of waiting for the last second to stop,” Poloz said in a German interview last week.
Essentially the bank governor’s justification for raising rates seems to be that an economy on the go means inflation is just around the corner and that slamming on the interest-rate brakes at the last minute is a bad plan.
That may be true, but there could more to it. As usual, interpreting the words and actions of central bankers is far from simple.
As Poloz has said repeatedly, the bank’s main goal is to keep inflation in check.”
Read the full article here.
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