Quote:
Originally Posted by Slava
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.
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Yeah, I understood that reason. Basically skirting the system to get the best of both worlds then.