Radio Rallies & Reversals

After contracting in July, the Canadian economy is back on the path of growth, posting a 30 basis point increase for the month of August. South of the border, the US economy posted an annual rate of 2% this past quarter. Despite the improvement in August, Canada's economy has gone from being the envy of the G7 to one that won't be running at full tilt till the end of 2012. The Bank of Canada is now expected to remain on the sidelines till the end of 2011; and all eyes and ears are now focused on the US Fed and any sign of how QE2 will unfold - Is QE2 a freight train to hop on, or get out of the way?

GB