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Reports are everywhere that the meeting that the premiers had with Mark Carney on Friday in Quebec City came with “more of the same talk” from The governor of the Bank.Ontario and Quebec’s premiers both went in with a gun loaded, too bad it was a water pistol.  They both wanted to push an agenda that the bank needs to cut rates to bring the dollar back down so their larhely manufacturing economy has a chance.Well honestly they had a snowball’s chance in hell of getting that agenda passed.  Mr. Carney made it clear to them and should be clear to all of us, he is focussed on inflation.  Therefore rates are CERTAINLY not dropping.  In fact they would most certainly be rising if it were not for the stagflation that the government is struggling with )higher then expected inflation, coupled with lower then expected overall economic growth).The governor reiterated his forecast that inflation may hit 4% by the end of the year, and therefore most experts believe he will do nothing with interest rates for the balance of the year.  He further forecasted economic growth to improve in early 2009, which may signal the bank to raise short term rates by then. 

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