Bank of Canada's 'soft landing' scenario hits the rocks in bond market
Canada's inverted yield curve is signaling the Bank of Canada may raise interest rates to a level that triggers a recession, placing the central bank in a tough spot as it aims to tame high inflation and engineer a "soft landing" for the economy. Canada's economy is likely to be particularly...
ca.finance.yahoo.com
Not that anyone's surprised. But this will put more pressure on the Liberal gov't, nobody likes to hear the "R' word when they're in power and he'll wind up wearing that a bit.
It creates an interesting problem for the libs tho. With trudeau's polling numbers so low it's thought that he may get pressured next year into resigning so that a 'clean' leader can take a shot at the election. They would pretty much have to do it next year or sooner so that there was time to actually conduct a leadership campaign and for the new leader to still have time to get organized and make their mark for the next election. If they wait till 2024 they'll be cutting it a little too thin i think.
But - the recession is likely to only be 'official' next year. And who wants to become leader when the country is still in a recession and your party is going to wear it, and now you will too. Especially if it looks like it may drag a bit. It's hard to blame the previous gov't for it when you WERE the previous gov't.