Bank of Canada keeps interest rate on hold

The Bank of Canada has once again announced to keep its overnight lending rate at 4.25 % .(April24, 2007)
This is the seventh consecutive anouncement of holding the rate steady since last year. The announcement is partly welcome news because it avoids the foolishness of a rate hike when core inflation is only about 2.3%- hardly a problem. In fact, as I have pointed out a number of times outside of the western Provinces where there is a solid resource driven boom underway, unemployment is still too high in our two major metropolises and our core manufacturing centres are still experiencing job losses . Better to sit tight on interest rates or even lower them somewhat to try to drive the unemployment rates lower in central Canada and spread the boom across the whole country. If there are labour shortages in Alberta by all means promote inward mobility from higher unemployment areas like Québec and the Maritimes.But don`t engineer a slump in ontario and Québec to cool off Alberta.
Lets hope that in their next announcements the Bank eases toward this position