Chart of the day: interest rates

| 25 August 2008 10:19

The global economy is in the relatively unique but unenviable position of being bullied by both recession and inflation at the same time. This leaves central banks in a bit of bind. The Federal Reserve has thrown all caution to the wind and cut rates in a reflationary ploy rivaling its actions during the last downturn. On the other hand, commodities-rich countries like Brazil, Norway, and Australia are at the top of the list for raising rates as the are not suffering anywhere near the difficulties that one sees in the United States. Fair enough.

The only question I have about all of this, as one can see on the chart below is: what the devil is commodity-rich Canada doing?

Source
Benchmark interest rates, The Economist

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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