In the second segment, Ed discussed the BoC’s press conference following their announcement on interest rates. He began by commenting on the market’s response to the press conference, stating that the bank should be relatively happy with the hawkish reactions from both the Canadian dollar and the bond markets. Ed also stated that he thought Tiff Macklem did a good job explaining the BoC’s decision during the Q&A session. He continued by emphasising that investors need to look at inflation in the long-term, instead of being overly concerned with the short-term. Ed concluded by discussing the potential effect of the omicron variant, the decision-making process of the BoC, and impacts on Canadian mortgages.
Ed joined BNN’s Andrew Bell this morning to discuss the Bank of Canada’s decision to continue holding interest rates steady. Ed said that this announcement was unsurprising, and that he agreed with the BoC’s call, commenting that, at the lower bound of interest rates, deflation is a bigger concern than inflation.