Chart of the day: interest rates

The global economy is in the relatively unique but unenviable position of being bullied by both recession and inflation at the same time. This leaves central banks in a bit of bind. The Federal Reserve has thrown all caution to the wind and cut rates in a reflationary ploy rivaling its actions during the last downturn. On the other hand, commodities-rich countries like Brazil, Norway, and Australia are at the top of the list for raising rates as the are not suffering anywhere near the difficulties that one sees in the United States. Fair enough.

The only question I have about all of this, as one can see on the chart below is: what the devil is commodity-rich Canada doing?

Benchmark interest rates, The Economist

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