The Bank of Canada increased the interest rate by 25 basis points on Tuesday, which was expected after it was revealed that the Canadian economy grew by 6.1% in the first three months. However, there was considerable caution injected into the announcement due to the uncertainty surrounding the global recovery from the financial crisis. This move is widely seen to be more symbolic than anything else. There is doubt as to whether interest rates would be hiked for the rest of the year and if so, would probably be modest. See the following article:
Interest Rate Hike
Much depends on how the crisis in Europe plays out and the recovery in the US.
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