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Tuesday, July 10, 2007

Canada Raises Rate, Says Further Move May Be Needed

" The Bank of Canada raised its benchmark interest rate for the first time in more than a year and said a "modest'' tightening may still be needed to slow inflation.

Policy makers pushed the target rate for overnight loans up by a quarter point to 4.5 percent, the highest in six years and 75 basis points less than the Federal Reserve's target. All but one economist in a Bloomberg News survey predicted the increase. "

No surprise really.

Source: Canada Raises Rate, Says Further Move May Be Needed (Update4) (http://www.bloomberg.com/apps/news?pid=20601087&sid=aH3oUdu4pUfs&refer=home)