Canada's Dodge leans toward rate hike

Central Banking staff
19 Sep 2002

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CANADA - David Dodge, the governor of the Bank of Canada, indicated Thursday that external factors would guide the central bank's short-term monetary policy, but the bank's preference would be to raise interest rates to slow down the domestic economy.

In his first remarks since the bank surprised some analysts by holding rates steady at 2.75% on 4 September, Mr. Dodge said weak economies abroad, stock market instability and rising tensions surrounding Iraq have been at the forefront of the

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