BANK OF CANADA KEEPS INTEREST RATE UNCHANGED!!
SOURCE
SUMMARY
I found this article on the Vancouver Sun, the main idea for this article is there will be no increase in the interest rate. The bank of Canada will keep its interest rate of one percent and are unsure when the interest rate might go up. The central bank posted its outlook for 2011 GDP growth by a half-percentage and noticed the economic slack shrank faster than anticipated but increased concern over the high Canadian dollar and the impact it might have on net exports, one of two biggest caused that have economic growth. Canada's overall inflation is set to rise to three per cent in the coming months.
CONNECTION
The connection from this article to this chapter is the banking system of Canada. The Interest rate is a big part of the Canadian Banking system. The Canadian Interest Rate will determine the economic growth of the country. It shows us if we will be heading into recession or not. It also affects the import and export of the country. The price of food, gas and oil is rising so if we rasie the interest rate we will go into recession.
REFLECTION
This article is telling us that the bank of Canada will not raise the interest rate. In my opinion that is a step in the right direction with the price of food and oil rising we are heading for another recession they need lower the interest rate. They price of food is getting so bad that the shelters and food banks are running out of food because no one can afford to donate. They price of oil is almost at a $1.50, economist are saying it will still go up. People will have to change there choice of transportation because they will not be able to drive anywhere
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