Quote:
Originally Posted by Daradon
Here's what I don't get about the rate manipulation. Why wouldn't they just have the BoC raise their rate. The banks would follow suit and it wouldn't be so heavy handed. I thought the Canadian lawmakers were more in charge of the BoC than the division they have down south. Someone here probably knows the finer points.
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They can't raise rates at this point because it would likely cause too much tightening and quell whatever recovery there has been to this point. This is the main issue; they have to get some inflation going, but not too much. Flaherty doesn't want Canadians to keep borrowing (but we are), so he's meddling in the markets.
I would love to know what the "conversation" was between Manulife and Flaherty yesterday though. That would be very interesting to say the least.