The article explores how monetary policy affects income inequality and inflation in Canada. It found that when the Bank of Canada lowers interest rates, income inequality increases, with higher-income households benefiting more. Conversely, when interest rates are raised, income inequality decreases. This is because higher-income households tend to save more of their income, which dampens overall spending and inflation. The study suggests that the Bank of Canada should consider income inequality when making decisions about interest rates to better predict inflation.