Policy makers worried that rising energy costs would boost core consumer prices
Central bank likely to increase rates before stopping at 4%
Bank of Canada likely to follow in Fed’s footsteps
Economy has forward momentum
U.S. economy to get a boost from rebuilding in hurricane-affected areas
Monetary policy will begin a renewed easing cycle in late 2006
But rates could decline in late 2006, economists say
Overnight rate likely to reach 4.0% by mid-2006
Increase to 3% was widely anticipated
C.D. Howe committee recommends increase to 3%