Agreed regarding government. But the BofC just controls overnight rates- short term. Market forces dictate the steepness of the yield curve. And the yield on the GoC 5 year has spiked 15% in the past 2 days. That rate affects mortgage rates. Inflation is well above the stated 1.7%, and historically the 5 Year yield has been above the rate of inflation. If the market dictates, I can't see the B of C containing mid to long term rates.