Chapter 5 - Economic Indicators

http://www.vancouversun.com/business/Inflation+stronger+than+expected+says+Bank+Canada+Carney/2721785/story.html

Summary:

Basically this articles talks about how the Bank of Canada governor Mark Carney is trying to keep the bank rates at its current percentage. They are also trying to control and maintain the inflation rate at 2%. The Bank of Canada will be renewing their inflation forecast in April when it release its most recent monetary policy report. Many different representatives from the banks like TD said the Bank of Canada may have a June hike, and BMO said they are looking forward to something happening in July, and the chances are increasing.

Connection:

This article is a perfect connection with what we learned about inflation. In a healthy economy, we should be having our bank rates from 1% - 3% which is what the Bank of Canada is trying to do, by maintaining a 2% inflation rate. Also, they mentioned about the Winter Olympics in Vancouver having a higher than expected level of economic activity which opened many jobs for the employment rate to increase. There were a lot of business activity considering the amount of tourist that came to buy many of the Olympic mascot products.

Personal Reflection:

I think the Bank of Canada is doing the right job of keeping the inflation rate at a 2%. It wouldn't be a healthy economy if it was lower than 1% or higher than 3%. With the Olympics that were in Vancouver, it helped open up many jobs before and after it. Also, it helped with Canada recovering from the recession as many tourist have spent money. There might be investors that came to the Olympics and thought that Vancouver in general is a good place to invest in.