there is no economic theory that argues that hiking interest rates will reduce energy costs. this will have no effect on inflation, but it will lead to increases in economic rents.

the reason we're supposed to have a central bank that takes these decisions out of the hands of governments is to tie interest rates to monetary policy and prevent decisions like this one. the policy of central bank independence has failed.

i would support abolishing legislation that removes democratic control over rate decisions and returning it to the control of the legislature.

https://www.ctvnews.ca/business/inflation/article/bank-of-canada-raises-interest-rate-as-inflation-projected-to-worsen/