What, if anything, would make interest rates go up?
Did they have to stay low because of the debt levels and households not being about to service the debt if rates had raised? Or is it because real estate is the largest contributor to Canada's GDP and it couldn't afford to take a hit?
Also with all of these measures that the government have implemented to try to keep the economy afloat, could it potentially trigger higher inflation when consumers begin spending again? If we did see higher inflation, would the government raise interest rates to combat? Will the government ever raise rates with the debt trap Canadians are in?
Curious to know your thoughts on this.