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Canada raising its central bank interest rate to fight inflation

Posted by John Reed on

I hold and recommend Canadian currency as a hedge against US inflation. Recently, inflation in the Canadian dollar hit 5%. I did not like that but I did not switch to Mexican pesos or some such in retaliation.

Now we hear that the Bank of Canada —their Fed—was going to raise the national interest rate to .5% to knock down inflation. Good. 

It sounds like they have also been buying government bonds, which is or ought to be prohibited. I believe it is prohibited in the EZ but they did it anyway.

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