We also know that many Canadians are asking how making their mortgage more expensive while they’re dealing with higher grocery bills will eventually lower inflation and make their lives easier. We’re also often asked how raising interest rates will solve inflation if it is primarily a global phenomenon.
However, the pace of the recovery in Europe and the United States is likely to be moderate. In addition, it seems likely that the growth in East Asian economies, which has been fairly rapid so far, has slowed at least for the time being due to the impact of severe acute respiratory syndrome (SARS).