'A tale of 2 economies': Interest rate policy in Canada and U.S. set to diverge: CP
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Rosa Saba at The Canadian Press takes a closer look at why we are seeing a divergence in interest rate policy between the U.S. and Canada, and possible implications - which could include a weaker Canadian dollar. Experts tell CP that if the Bank of Canada’s rate falls too far below the Fed’s, it could negatively affect the Canadian dollar and make imports from the U.S. more expensive. That could end up putting upward pressure on inflation over time.
