“We really don’t feel most of the effect of interest rate hikes for 18 months or so,” said Antunes. “There were a lot of people who signed five-year mortgages during the pandemic, before most of the interest rate hikes. “In the areas which they directly impact with interest rates, the Bank is adding to inflation. And the biggest contributor to inflation coming down has been gasoline prices, which has nothing to do with interest rates,” said Macdonald. The Bank of Canada survey found that a majority of Canadians are expecting a “mild to moderate” recession over the next 12 months.

Source: thestar January 18, 2023 00:20 UTC