The Bank of Canada has raised interest rates again, saying:
the economy is recovering but still faces major challenges.
If the economy is facing major challenges, then why raise rates?
BMO economist Douglas Porter said poor housing sales and less spending by Canadians is still making for a fragile economy — and higher borrowing costs wouldn’t help improve the situation.
I can’t think of a really good reason why the BoC bumped its rate again, for the third month in a row.
The possibility of a double dip recession isn’t just being considered here in Canada. World-wide the possibility seems to be of real concern. Is the global economy out of the woods? Two years after near-meltdown, with the U.S. looking sluggish, equity markets groggy and Europeans fighting a debt crisis, experts gathered in Italy offered a generally gloomy outlook — especially for the United States and much of the industrialized world. Read More…