Canada October Inflation Is 2.4%, Fastest in 2 Years

Discussion in 'Economics' started by Kassz007, Nov 23, 2010.

  1. No. Stronger than parity hurts Canadian exports to America which account for ~20% of GDP. Carney won't risk a slow down, imo.
     
  2. My thoughts as well. But if inflation keeps on clipping at this pace, I don't think he'll have a choice but to raise. Might be a small raise, and surely won't be until 2011, but it is a possibility. If USD keeps its footing he'll have room to move, but you are right, he probably doesn't want to.
     
  3. No. Stronger than parity hurts Canadian exports to America which account for ~20% of GDP. Carney won't risk a slow down, imo.


    Agree. The close to Par looney is cutting into the Profit margins of many Canadian companies right now. Carney will fight to keep the Looney from par or above par.

    Exports are still flowing but margins are thinner.....in otherwords.
     
  4. Bolivia, Argentina, Nigeria, Kenya, Romania, Uzbekistan, Poland, Thailand, CANADA, Yemen. :confused: :D
     
  5. they have no choice
    they must raise
    they don't have mandate to support export - they must support price stability

    by the way they raised 3 times already and exchange rate is still the same
     
  6. Very small raises though. Quarter point each hike I do believe. But more will be coming if inflation stays persistent. As indicated in the report, it all largely depends on the price of gas. If crude slips so will inflation, and hikes will be less likely and less necessary.
     
  7. wrong. core jumped 0.4% and it excludes gas

    and even gas since Nov 1 up +3% despite oil is down from 88 to 80
    so next month CPI won't show anything good

    0.25% hike would be more than appropriate now
     
  8. Frostie

    Frostie

    They should hold and wait to see what the holiday numbers look like. The damn roller coaster needs to stop and extending the time period between rate hikes/cuts would help smooth things out.
     
  9. Perhaps reading is not your strong suit. From the article:


    "Gasoline Prices

    Gasoline prices accounted for about half the increase in the annual inflation rate, gaining 8.8 percent in October from a year earlier, Statistics Canada said."


    But I digress. I agree with a quarter point raise, but nothing more than that at the moment.
     
    #10     Nov 24, 2010