As someone whose business is suffering from the rapid rise in the Canadian dollar, I can’t help but agree with the Toronto Star editorial board on at least this one point: The Bank of Canada should be reducing interest rates immediately, without delay!
The greatest factor in the rise of our Canadian dollar – a major battering of the US dollar on the world market – is something we can do nothing about, and is something that will eventually turn around. However, the interest rate differential is something we do have control over, and could do something about immediately – and all evidence suggests it can be done without sending inflation higher. The Star is right: if David Dodge was worried about the dollar 18 months ago, he should be petrified now. Time to wake up, lame duck!
(Damn, that was painful. I’ll have to purge myself with a Fisking of Haroon or Walkom sometime soon…)