In the most recent April 13, 2022 announcement, the Bank of Canada increased its target for the overnight rate to 1%, wi

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In the most recent April 13, 2022 announcement, the Bank of
Canada increased its target for the overnight rate to 1%, with the
Bank Rate at 1¼% and the deposit rate at 1%. This move was picked
up by the media that the Bank of Canada increased interest rates.
Use this information to answer the following questions?
(a) When the Bank of Canada announced that the interest rates
would be increased businesses were already expecting the Bank of
Canada to increase interest rates. How do these built-in
expectations complicate the Bank of Canada's move to raise interest
rates?
(b) Briefly explain the effect of the April 13, 2022 interest
rate increase announcement of the value of the Canadian dollar? and
the economy?
(c) Briefly explain the channel through which this interest
rate increase can affect the Canadian economy?
(d) As mentioned in class the interest rate channel is the
traditional channel through which monetary policy affects the
economy. Briefly describe one non-traditional channel through which
the Bank of Canada could achieve the same objective as the interest
rate increase.
(e) Why does the Bank of Canada have fixed dates for the
interest rate announcements (and monetary policy reports) ?