Internal Liberal power struggle over Chretien and Martin intensifies
The Ottawa clash pits Prime Minister Jean Chretien against Finance Minister Paul Martin in a furiously partisan battle. Chretien abruptly dismissed Martin, triggering broad Liberal backlash and fears of fiscal loosening under successor John Manley ahead of the next federal election. Alexa McDonough resigns as NDP leader, with Winnipeg MP Bill Blaikie seen as a possible successor candidate.
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Paul Martin
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Liberal
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Alexa McDonough
Canada
House of Commons
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Bill Blaikie
Liberals
Turner Report Predicts Sharp Canadian Interest Rate Hikes
The Bank of Canada plans to raise rates starting in early June, with the prime rate expected to reach 6 percent or higher by year end. Five year mortgage costs could climb to 8 or 9 percent, ending 0 percent financing and impacting car sales and business loans. The shift is linked to post September 11 economic momentum and political moves by Jean Chretien.
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Bank of Canada
Jean Chretien
Paul Martin
Canada
Canuck style mayhem warned by Tremors in Finance
Garth Turner warns of rising interest rates as Canada faces political turmoil in Ottawa and a fragile dollar. He forecasts higher prime rates, a shift from recession fears to inflation concerns, and warns mortgage holders to brace for a tightening money supply amid volatile markets.
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