It is clear the Bank of Canada foresees a challenging task ahead and wants to scare borrowers with the idea it will keep raising rates. But as we talked the list grew longer, some effects from outside the country — and some that will emerge from central bank rate hikes themselves. Just this week, U.S. banker Jamie Dimon, head of JPMorgan Chase, warned of an " economic hurricane " as the U.S. central bank continued to raise rates. Bank of Canada rate hikes can't cut the price of world commodities set in international markets. "High rates tend to produce more conflict than very low rates," she said, noting that rising interest rates have led to government defeats and opposition victories.

Source: CBC News June 03, 2022 14:09 UTC