Crow makes the case for higher interest rates

John Crow, the former Bank of Canada chief, suggested that interest rates could increase further as the Canadian inflation rate is close to the upper limit of its target.

Source: The Globe and Mail

Former Bank of Canada governor John Crow sees room for higher interest rates to control inflation, which he says is poised to rise further if a war with Iraq pushes energy prices higher.

Monetary policy "is stimulative at the moment" and real interest rates, adjusted for inflation are zero, he said ye