The Bank of Canada’s latest interest rate decision has reinforced fears that the economy is headed for a recession that could cost some Canadians their jobs and keep worker wages stagnant. Last week, RBC predicted a “moderate” recession by 2023 that sends the unemployment rate to around 6.6 per cent as a result of high interest rates. The Bank of Canada has downplayed fears of a recession, contending that Canadians are well-equipped to handle higher rates and fasten their wallets. “By front-loading interest rate increases now, we are trying to avoid the need for even higher interest rates down the road. The bank will announce its next interest rate decision on Sept. 7.

Source: thestar July 15, 2022 00:14 UTC