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Originally Posted by fundmark19
I am sure this is the bottom!
Since the us promised to keep its rates low again can Canada really afford to raise ours? By raising our rates with the US not raising theirs our Dollar value will rise which in turn makes our sales of goods to the US lower making our economy struggle again? Does anyone have any more insight on this? Seems like Canada is stuck between a rock and a hard place so to speak
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Managing the money supply is really a balancing act. Right now the latest GDP data has growth on an annualized basis at 5%. Numbers over 3% generally suggest inflationary pressure. Should the Bank of Canada hike rates, it will be with the intention of slowing down the economy to rein in inflation. The hope would be that the amount that they hike rates by will not be so great that the economy goes back into the toilet and GDP growth numbers struggle again but rather just take the edge off.