Quote:
Originally Posted by Bill Bumface
And isn't the big concern with Canada not raising rates to match the US rates that devaluation of CAD vs. USD will occur? Rising oil prices should negate that concern somewhat, given the tendency of CAD/USD to follow oil prices:
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Pretty much. Lower rates hurt the currency, and if the currency is lower that's inflationary, because it pushes up the price of imported goods, and goods where the underlying commodity is priced in USD (most commodities).