‘Awful lot of pain for a very little gain’: Some economists question Bank of Canada’s key interest rate hike

The Bank of Canada has raised its benchmark borrowing rate to five per cent. It hasn’t been this high since April 2001, despite Canada’s economy performing better than most forecasters predicted. Mackenzie Gray explains why some economists don’t believe this hike was necessary, and Dawna Friesen speaks with economist Armine Yalnizyan about the potential long-term effect for Canadians, and why banks follow suit when the central bank raises its key rate.

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