Why the Bank of Canada interest rate signals deeper economic troubles ahead

Rudyard Griffiths and Sean Speer discuss the Bank of Canada's decision to hold the interest rate at 2.25 percent amid rising inflation, weak economic growth, and the ongoing Iran War. They explore whether central banks are repeating past mistakes by downplaying inflationary pressures from the Iran War's energy shock, drawing parallels to the "transitory" inflation miscalculation after COVID-19. They also examine Canada's productivity crisis, structural economic impediments, and concerns that monetary policy may be losing effectiveness as government debt burdens mount and bond markets signal persistent borrowing challenges.Subscribe to The Hub's podcast feed to get all our best content:https://tinyurl.com/3a7zpd7e (Apple)https://tinyurl.com/y8akmfn7 (Spotify)Watch a video version on YouTube: https://www.youtube.com/@TheHubCanadaFollow The Hub on X: https://x.com/thehubcanada?lang=enCREDITS:Amal Attar-Guzman - ProducerElia Gross - EditorRudyard Griffiths and Sean Speer - HostsSean Kilpatrick/The Canadian Press - Photo Credit Hosted on Acast. See acast.com/privacy for more information.