Bank of Canada Raises Rates for First Time in 7 Years

ArticleBanking crisisAugust 17, 2017 - 8:35:34 AM

Canada cautiously became the first Group of Seven country to join the U.S. in raising interest rates on Wednesday, feeding speculation the world’s central bankers are entering a tightening cycle.

With the economy expected to “grow by 2.8% in 2017” up from their April forecast of 2.6%, the Bank of Canada has decided to raise interest rates for the first time in 7 years to 0.75%.

It may be minor, but it should be just enough for the Bank of Canada's Stephen Poloz to cut them again when things start to get tough, and the 2.8% growth vanishes just as quickly as it was envisioned.

Source : MisesInstitutes

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