Interest rates will stay high, ’cause the stone-cold bond market said so

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Open this photo in gallery: Bank of Canada Governor Tiff Macklem holds a press conference in Ottawa on Wednesday, July 12, 2023. THE CANADIAN PRESS/Sean KilpatrickSean Kilpatrick/The Canadian Press John Rapley is a political economist at the University of Cambridge and managing director of Seaford Macro. ‘Over and done.’ So rose the chorus when news dropped last week of a surprise contraction in the Canadian economy and many economists concluded that the Bank of Canada’s job was done. With inflation moderating and the economy slowing, they reasoned, interest rates will go no higher and will, by next year, start coming...