Wednesday's markets: Bank raises rates ¼% , ignores Katrina(Canada)

[CHIMO]

Wednesday's markets: Bank raises rates ¼% , ignores Katrina
By R.W. Fisher, CBCUnlocked
Updated: Sep 7, 2005, 17:55

The Bank of Canada raised interest rates Wednesday, boosting its benchmark by 25 basis points or a quarter of a percent to 2.75 %.

The U.S. economy, in the Bank's view, will show lower growth of the rest of 2005 but should see higher growth in 2006 when repairs and re-building gain momentum.

Canadian Dollar

The Canadian dollar jumped on the Bank's announcement but then sold off for only a small gain on the day. One trader described trading volume as "moderate."

It closed up, just three basis points at 84.15 cents US. It was stronger against the Euro, gaining more than a third of a Euro cent to trade at 67.78 Eurocents at the North American close.

http://www.cbcunlocked.com/artman/publish/article_90.shtml

Do others follow?