The Bank of Canada is meeting its target for inflation, despite the huge increase in fuel prices. At the same time, the Organisation for Economic Co-operation and Development is advising the central bank to raise interest rates.
However, this could cause the Canadian dollar to appreciate even further relative to the American currency.
For more analysis of gross domestic product (GDP) growth figures in Canada and worldwide, in the context of inflation rates and monetary policy, please see These are tricky times for Bank of Canada Governor, Mark Carney by CanaData chief economist Alex Carrick.
In his blog, Carrick discusses the OECD prognosis for North America, Germany, Japan and China, and shows why Bank of Canada governor Mark Carney faces a dilemma.