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Business Economic Report There are many factors that influence decisions to spend, to borrow money or to invest. There are, however, few main ones. These are interest rates, Canadian dollar exchange rate, and inflation rate. However, the most important factor is confidence. People usually feel confident to spend, borrow and invest if country performs well economically. Today I can say that Canada is one of those countries. It is working at a full capacity as real GDP growth and unemployment rate indicate. What goes down must - when it comes to interest rates - eventually go up. And on June 30, 2004, another cycle of rising interest rates began in North America. For the first time in four years, the U.S. Federal Reserve Board raised rates. The movement of American rates is critical to what happens on this side of the border. According to the Bank of Canada: "Interest...

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