In an interview on CTV’s Question Period, David Dodge says the current head of the central bank made the right decision to increase the key interest rate as quickly as he did in an effort to staunch inflation.
David says many central banks misjudged the speed of recovery following the early days of the COVID-19 pandemic, so they took too long to make significant interest rate increases they needed to keep inflation low.
“I think the right thing was to go fast because they started too late. All the central banks started too late, but particularly here in North America, where we have had very, very strong recovery. We've never had a recovery as rapid as the one we had in 2021. It was incredible.”