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In a recent interview with the Edmonton Journal, Chief Economist Charles St-Arnaud spoke about how consumers are losing confidence in the Bank of Canada and how they are responding to rising inflation.

Consumers’ budgets are being squeezed from everywhere, and that’s why we see the decline in confidence,” he said.

Raising interest rates will take months to have an effect on inflation, said St-Arnaud, who predicts the rate to go from 2.5 per cent to 3.5 per cent by 2023 to create a reduction in domestic demand. He calls it the great consumer squeeze, as people are being hit by rising cost of living and interest rates, while salaries are not keeping pace.

Read the full article here.

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