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No domestic economic reports out today to attenuate the rising interest rates across the country, but there are some global statistics that may help curtail financing costs going forward.

China’s Producer Price Index was published overnight showing the world’s second largest economy is experiencing deflation at an annualized rate of -4.6%.  This is the largest decline in production costs for the Sleeping Giant in six years.  Many speculate that China overinflates their production numbers so the actual devaluation of goods and services may in fact be lower than published. Remember that rates have been rising to curb the effects of inflation, so lower prices will help take them back down.

Closer to home, Canada’s Central Bank raised their overnight rate earlier this week by 0.25% only to see their jobs creation statistics go negative today and their unemployment rate rise to 5.2%.  This is either an example that policy makers sometimes make the wrong moves.  Our Central Bank (AKA: the Fed), the Bank of Japan, and the European Central Bank will all be issuing rate statements along with their monetary policy decisions next week.  So for now the future of interest rates is up in the air with the portent of a storm brewing in the background.

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