Tuesday, April 16, 2002
Loonie Tunes- The Bank of Canada raised its overnight rate (the equivilent of the Fed Funds rate) by a quarter-percent, citing increased inflation presures. This was the first time in five years that the BoC raised rates independently of the Fed. This might be a bit premature, but it will be a confidence boost for the Liberals that the recovery is strong enough to warrent a slight tightening in the money supply. It will also help the Loonie in the short term, but it may well be a dead-cat bounce if the Canadian economy doesn't continue to grow as it has in the last quarter.
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