In an homage to children’s author Dr. Seuss, CIBC World Markets’ senior economist, Dr. Avery Shenfeld, offers “The Dodge Who Stole Christmas”, casting Bank of Canada governor David Dodge as the Grinch who may have to reverse his recent rate hiking action later this year.

Shenfeld notes that the central bank has been raising rates out of fear of possible inflation, ignoring some of the other negative risks to the economic outlook. “Every Who down in Whoville liked low rates a lot; But the Dodge who lived high on Bank Mountain, did NOT!” writes Shenfeld.

“So the Dodge sat there fretting, his long fingers drumming I MUST find a way to keep price gains from coming. Then he stared at the press and croaked into their mikes Why I’ll calm this right down with some interest rate hikes!”

Shenfeld warns that these pre-emptive rate hikes could constitute taking away the low-interest punch bowl too early in the recovery, with too many downside risks still in play.

The result, Shenfeld suggests is that the Bank may have look at cutting rates once again.