Friday, April 27, 2007

RBC says inflation could force Canada rate move

(Reuters) - Lifting interest rates at a time when the United States could start cutting them would certainly boost the Canadian currency further, but the Bank of Canada may have little choice, as hikes may be needed to keep inflation around the bank's 2 percent target.

"The might... be wary of turning hawkish in the wake of the big ... selloff in USD/CAD that will pose another intense challenge to Canadian manufacturers," RBC strategist David Watt said in a note.


Read more at Reuters.com Bonds News

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