Posts Tagged ‘Keynesians’

Notes From Underground: Canada raises rates and Austalians are stressed by Europe

July 20, 2010

This morning, the Bank of Canada (BOC) raised rates to .75 percent as the market widely anticipated. The Canadian dollar was sold off after the announcement as the statement following the INCREASE was considered to be rather dovish going forward. Mark Carney, head of the BOC, said the bank was concerned about the European debt crisis and the continued balance sheet repair going on in the household and government sectors in the developed economies. The BOC felt that investment was tepid due to the cited global uncertainties. It raised rates but still believes that ample monetary stimulus is in place and its removal will be very dependent on the global growth story.

(more…)