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November 17, 2014

Why Hasn’t Ultra-Loose Monetary Policy Caused Higher Inflation?

The central bankers who administer monetary policy for the world’s largest economies have been whipping up potent cocktails that combine ultra-low interest rates with quantitative easing (QE) programs and other creative forms of monetary policy stimulus since the start of the Great Recession. Most market watchers have predicted that the unprecedented scope and scale of this monetary largesse would eventually trigger significantly higher inflation, as measured by the Consumer Price Index (CPI). But so far it hasn’t happened. In fact, more often than not, these ultra-loose monetary policies have corresponded with falling CPI inflation. Today’s question is: Why? I am an independent full-time mortgage broker and industry insider who helps Canadians from coast to coast. If you are purchasing, refinancing or renewing your mortgage, contact me or apply […]