OECD urges Bank of Canada to raise interest rates [View All]

The Bank of Canada should start raising interest rates immediately so the economy doesn’t become overstimulated, according to a leading international economic agency.

The Organization for Economic Co-operation and Development said Wednesday that the central bank should tighten its policy lending rate gradually, but without delay.

Temporary stimulus measures such as low interest rates could overstimulate the economy if left in place for too long, the organization said.

“To build credibility, (governments) should flesh out recently announced fiscal consolidation plans, focusing on spending reductions, and embark on the structural reforms these plans require,” the OECD wrote in its twice-yearly economic outlook report.
http://www.thestar.com/business/article/814540--oecd-urges-bank-of-canada-to-raise-interest-rates