Bank of Canada Raises Rates, Expects to Hold

The video discusses the current state of central banks' rate hiking cycles, focusing on the Bank of England and the Bank of Canada. It highlights the impact of these decisions on currencies and inflation forecasts. Michael McKee provides an analysis of the economic impacts, noting differences between Canada and the US, particularly in the housing market. The video concludes with a discussion on the challenges central banks face in assessing the impact of rapid policy shifts and the potential for over-tightening.

What are the implications of the Bank of Canada's decision to hold rates?

How does the current inflation forecast of the Fed compare to previous expectations?

In what ways might the housing market in Canada differ from that in the US regarding interest rate changes?

What challenges do central banks face in assessing the impact of their policy changes?

What does the term 'long and variable lags' refer to in the context of monetary policy?