RE:RE:RE:RE:RE:Bank of CanadaThey're dreaming in technicolor if the Feds think that they're going to reduce the Inflation rate to 2% next year. If they're going to drop rates in 2023 the way some suggest, then? Inflation will keep rising from the current 8%, to 10 to 12% by the end of 2023. Btw. where did you read that Sham?
No, the overnight rate will go to 5%, even higher if they have to, in 1 to 2 years from now, before we see inflation droping to even 4% by 2025.
This shelter, energy, food price Inflation we have right now, is here to stay for some time. Why would these Sector Leaders wanna see price reductions, when they've made such strong Inflationary gains these past few years? Believe you me, they'll want Quality/price over Quantity. That's why we have supply issues right now. They trying to balance quantity with Quality/price.
My gut says, that the Feds can reduce Inflation to 4%, that's it. They'll even be hard pressed to get to that %age.
Shamhorish wrote: those were dark days, when mortgage rate reached 18-20%
let us hope bank of canada or the fed do not have a hiddin agenda
and will drive interest rate to those carzy levels,
even 10% rate will have drastic effect
on the other hand,
if i remeber well, BoC to have a further 75bp of hikes, bringing the overnight rate to 4% in the fourth quarter of 2022, dropping to 3.75% in the third quarter and 3.25% in the fourth quarter of 2023. It predicted that the BoC would keep lowering the policy rate, reaching 2.75% in the first quarter and 2.5% in the fourth quarter of 2024.
thay is if they do not have a hiddin agenda, time will tell