Quote:
Originally Posted by you&me
Question - If rates hold while others (namely the US) continues to rise, or we lower our rates ahead of others, that will likely cause the dollar to tumble, which will increase the cost of many goods and cause... inflation, no?
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The dollar and currency is so hard to predict though. If everything else was equal, that might be the outcome. But, with currencies there are a lot of factors and it's not purely interest rates. Case in point, Canada raised rates earlier this year than the US and it made almost no difference.
Aside from that though, the consensus view seems to be one more hike in the US and they'll hold the rates as well.