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The 2.9% is the current overshoot in the price of the CPI basket of goods and services.

Baskets of CPI goods and services that Bank of Canada would like to cost $3,000/month now cost an extra 2.9% x $3,000 = $87/month.

Central banking has advanced over the decades. Central banks have come to realised there are more ways to deal with downturns. Also, money can be injected into an economy in other ways than printing cash and handing it out in suitcases to government cronies at one of the central bank backdoors in the middle of the night.

Norman1 said
The 2.9% is the current overshoot in the price of the CPI basket of goods and services.

Baskets of CPI goods and services that Bank of Canada would like to cost $3,000/month now cost an extra 2.9% x $3,000 = $87/month.

Central banking has advanced over the decades. Central banks have come to realised there are more ways to deal with downturns. Also, money can be injected into an economy in other ways than printing cash and handing it out in suitcases to government cronies at one of the central bank backdoors in the middle of the night.  

Yes since the financial crisis, we have seen more ways than just interest rate to support the economy, after interest rate goes to zero and they dont want negative rates.
It remains to be seen other than jacking up rates, are there also other ways to cool down inflation, that will be interesting as it has not been done yet. Shrinking the CB balance sheet is simply withdrawing simulation, not adding constraints.

Norman1 said
Increasing supply will cool down inflation.

The US will be releasing 1 million barrels of oil per day from their Strategic Petroleum Reserve for the next 180 days to cover some of the Russian oil embargoed:

Biden spurs record emergency oil release in 'moment of peril' for world

By the end of that release, US oil producers are expected to have boosted production by one million barrels per day.

Those will make up for about 1/3 of the 3 billion barrels per day of oil from Russia being embargoed.

Need some other countries to step up for the remaining 2 billion barrels per day.  

That math doesn't work ... 1 million barrels/day = 1/3 of 3 billion/day?

Actual Russian oil production is 10 million/day. So 1 million/day = 1/3 of 30% of 10 million/day ...

rodeworthy said

Maybe the Keystone XL pipeline would have come in handy, Joe.  

Not as long as the US consider US oil greener than Canadian oil, as in better for the green-back ...

Yes, that should be 3 million barrels a day from Russia!

We don't need to make up for all of Russia's 10 million barrels per day production. We just need to make up for the part we were buying and now embargoed. China and India are still buying oil from Russia.

It's not just North America that produces oil. Some countries closer to Europe, in the Middle East, for example, do as well.

China is continuing to import their 1.4 million barrels a day share of oil from Russia. Same with India. So, the other oil producers will need to make up less than 4.7 - 1.4 = 3.3 million barrels a day.

Yes, there's other stuff. Russia was a significant world supplier of potash fertilizer too.

I think all those shipping containers are still sitting on this side of the Pacific Ocean causing a shortage of containers in Asia.

OPEC has little interest to pump more oil just to help to keep oil price lower.
Their incentive to pump more is only when oil price deems high enough for them to sell more.
Dont forget they flooded the market with oil and crash the price not too long ago, with the intention of killing the fracking and oilsands economics for good. Now with oil back at $100, they are going to try to keep price up so they "avg up" those oil that they dump into the market at $30 at the time.
So No, they have very little incentive to fill the gap, and if they do, its not because they try to help the rest of world against Russia.
India has no choice but continue to keep buying from Russia.
China is either a friend or neutral with Russia, they will continue to buy too.

Saudi Arabia does have a life after oil. Just that oil has been the easier path for them to date.

This is from an April 2021 Bloomberg opinion piece How Saudi Arabia Can Thrive in a Post-Oil World:

That pessimistic vision may not be quite right, though. The country’s rich endowment of natural assets — not all of them hydrocarbon-based — could fuel new industries and sustain existing ones as carbon emissions fall toward zero. Its reserves of phosphates, copper and gold are world-class, but have been under-exploited thanks to the way crude crowds out everything else. The kingdom’s solar potential, meanwhile, is among the richest in the world, giving Saudi Arabia the chance to be as central to a future green-hydrogen sector as it was to the past century’s petroleum trade.

The same article says their oil production cost is around US$2.80 per barrel!

"The same article says their oil production cost is around US$2.80 per barrel!"
Yes, I believe the US$2.80 per barrel.
On the other hand, my stockbroker told me they need $90 oil to fund their generous social programs.

"Its reserves of phosphates, copper and gold are world-class"
These raw materials are only really valuable if they can be transformed into something useful. For example, oil is only really valuable if it is refined into gasoline.

Loonie said: When people complain to me about their finances, I ask them how much they have spent in interest in their lives.

I have spent less than $100 on interest in my life. And $55 of that was when a delayed transfer to buy a GIC cost me bridge interest for a few days. VanCity had offered to waive the interest, but I said not to because they had after all not had the money. My mistake! I'd expected to pay just the deposit interest on the GIC, but they whacked me the equivalent of overdraft rates!

A note about when one can open a HELOC without paying large extra fees:

When we speak of "purchasing or refinancing," the renewal of a mortgage constitutes a refinancing. That's why my friend paid no HELOC fees when he renewed with a mortgage/HELOC split.

RetirEd