Rising Interest, Rising Tensions: The Bank of Canada’s response to Canada’s Inflation Problem

To this end, Patrick has developed widespread experience in all areas of corporate commercial law. In particular, he has acted for real estate development clients in the acquisition, disposition, development, leasing and financing of commercial, industrial and residential developments.


[1] Mark Rendell, “Bank of Canada delivers half-point rate hike, signals end of aggressive campaign may be near”, The Globe and Mail (9 December 2022), online <www.theglobeandmail.com/business/economy/article-bank-of-canada-interest-rate-hike-announcement-december/>.

[2] Bank of Canada, “Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening” (7 December 2022), online: <www.bankofcanada.ca/2022/12/fad-press-release-2022-12-07/> [Bank of Canada 1].

[3] Statistics Canada, “Price Trends: 1914 to today” (last modified 21 December 2022), online: Consumer Price Index Data Visualization Tool <www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpilg-ipcgl-eng.htm> [Statistics Canada 1].

[4] The Conference Board of Canada, “Hope at Last: Canada’s Two-Year Outlook” (30 March 2021), online (pdf): The Conference Board of Canada <www.conferenceboard.ca/e-Library/abstract.aspx?did=11105>.

[5] Timothy Lane, “Our COVID-19 response: Policy actions” (May 2020), online: Bank of Canada <www.bankofcanada.ca/2020/05/ our-policy-actions-in-the-time-of-covid-19/#:~:text=Our%20response&text=We%20have%20responded%20in%20two,key%20 funding%20markets%20functioning%20well.>.

[6] The Conference Board of Canada, supra note 4.

[7] Steven Globerman, “The Outlook for Inflation and Its Links to Monetary Policy” (2021), online: The Fraser Institute <www.fraserinstitute.org/sites/default/files/outlook-for-inflation-and-its-links-to-monetary-policy.pdf>.

[8] Tiff Macklem, “Reflections on 2020” (12 December 2022), online: Bank of Canada <www.bankofcanada.ca/2022/12/reflections-on-2022/>.

[11] Statistics Canada 1, supra note 3.

[13] Bank of Canada, “Bank of Canada maintains policy rate, removes exceptional forward guidance” (26 January 2022), online: Bank of Canada <www.bankofcanada.ca/2022/01/fad-press-release-2022-01-26/> [Bank of Canada 2].

[14] Statistics Canada 1, supra note 3.

[16] Ceyda Oner, “Back to Basics: What Is Inflation?”, Finance & Development (22 March 2010), online: <www.elibrary.imf.org/view/journals/022/0047/001/article-A017-en.xml>.

[20] Adrian, Erceg & Natalucci, supra note 15.

[21] Diane Bellemare, “To curb inflation we must not forget the mistakes of the 1980s and 1990s: Senator Bellemare”, Senate of Canada (12 August 2022), online: <www.sencanada.ca/en/sencaplus/opinion/to-curb-inflation-we-must-not-forget-the-mistakes-of-the-1980s-and-1990s-senator-bellemare/>.

[22] Statistics Canada 1, supra note 3.

[23] Bank of Canada, “Canada’s Economic Future: What Have We Learned from the 1990s?” (22 January 2001), online: Bank of Canada <www.bankofcanada.ca/2001/01/canada-economic-future-what-have-we-learned/>.

[25] Bank of Canada 1, supra note 2.

[26] Statistics Canada 1, supra note 3.

[28] Globerman, supra note 7.

[29] Barry Eichengreen et al, “Rethinking Central Banking” (September 2011), online (pdf): Committee on International Economic Policy and Reform <www.brookings.edu/wp-content/uploads/2016/06/Rethinking-Central-Banking.pdf>.

[30] Bank of Canada 1, supra note 2.

[31] Newfoundland & Labrador Statistics Agency, “Annual Average Unemployment Rate Canada and Provinces 1976-2021” (7 January 2022), online: <www.stats.gov.nl.ca/Statistics/Topics/labour/PDF/UnempRate.pdf>.

[33] Bellemare, supra note 21.

[35] Nojoud Al Mallees, “Here’s how Canada stacks up against other countries when it comes to high inflation,” National Post (19 November 2022), online: <www.nationalpost.com/pmn/news-pmn/canada-news-pmn/heres-how-canada-stacks-up-against-other-countries-when-it-comes-to-high-inflation>.

[37] Globerman, supra note 7.

[38] Bank of Canada, “Bank of Canada maintains policy rate and forward guidance” (8 December 2021), online: Bank of Canada <www.bankofcanada.ca/2021/12/fad-press-release-2021-12-08/>.

[39] Bank of Canada 2, supra note 13.

[40] Julie Gordan & Steve Scherer, “Hot inflation opens rare attack on Bank of Canada”, CTV News (23 June 2022), online <www.ctvnews.ca/business/hot-inflation-opens-rare-attack-on-bank-of-canada-1.5959770>.

[41] Philip Cross, “Philip Cross: The Bank of Canada has failed, not just Tiff Macklem”, Financial Post (20 May 2022), online <www.financialpost.com/opinion/philip-cross-the-bank-of-canada-has-failed-not-just-tiff-macklem>.

[43] Philipp Carlsson-Szlezak, Paul Swartz, and Martin Reeves, “Weighing the Risks of Inflation, Recession and Stagflation in the U.S. Economy,” Harvard Business Review (10 June 2022), online <

[44] Gordon & Scherer, supra note 40.

[46] IMF Executive Board, “Canada: Staff Report for the 2022 Article IV Consultation” (17 November 2022) online: International Monetary Fund <www.elibrary.imf.org/view/journals/002/2022/361/article-A002-en.xml>.

[47] Stephanie Hughes, “Bank of Canada’s Carolyn Rogers flags first-time homebuyers facing ‘trigger rates’ as risk.” Financial Post (22 November 2022), online: <www.financialpost.com/news/economy/bank-of-canadas-carolyn-rogers-flags-first-time-homebuyers-facing-trigger-rates-as-risk>.

[48] Mark Rendell & David Parkinson, “Pierre Poilievre wants to make Canada the world’s ‘crypto capital.’ Why his populist pitch may find fertile ground”, The Globe and Mail (3 April 2022), online: <www.theglobeandmail.com/business/article-pierre-poilievre-wants-to-make-canada-the-worlds-crypto-capital-why/>.

[49] Alex Hern & Dan Milmo, “Crypto crisis: how digital currencies went from boom to collapse”, The Guardian (29 June 2022), online: <www.theguardian.com/technology/2022/jun/29/crypto-crisis-digital-currencies-boom-collapse-bitcoin-terra>.

[52] Marieke Walsh, Mark Rendell & Ian Bailey, “Conservative leadership candidate Pierre Poilievre says he would remove Bank of Canada Governor if he forms government”, The Globe and Mail (12 May 2022), online: <www.theglobeandmail.com/politics/article-poilievre-says-he-would-remove-bank-of-canada-governor-if-he-forms/>.

[54] Walsh, Rendell & Bailey, supra note 52.

[57] Gabriel Soderberg et al, “Behind the Scenes of Central Bank Digital Currency: Emerging Trends, Insights, and Policy Lessons” (February 2022), online: IMF Fintech Notes <www.imf.org/en/Publications/fintech-notes/Issues/2022/02/07/Behind-the-Scenes-of-Central-Bank-Digital-Currency-512174>.

[58] Ethan Lou, “Ethan Lou: Why a central bank digital currency could be an inflation-fighter’s best friend,” Financial Post (18 May 2022), online: <www.financialpost.com/fp-finance/cryptocurrency/central-bank-digital-currency-inflation-fighters-best-friend>.

[61] Mark Rendell, “Core inflation puts pressure on Bank of Canada to raise interest rates again”, The Globe and Mail (22 December 2022), online <

[63] Eichengreen et al, supra note 29.

[66] Ehsan U. Choudhri & Lawrence L. Schembri., “A Tale of Two Countries and Two Booms, Canada and the United States in the 1920s and the 2000s: The Roles of Monetary and Financial Stability Policies” (14 April 2013), online (pdf): <www.carleton.ca/choudhri/wp-content/uploads/A-Tale-of-Two-Countries-and-Two-Booms-Canada-and-the-United-States-in-the-1920s-and-the-2000s.pdf>.

Source