Bank of Canada Talks Down its Dollar
Bank of Canada Talks Down its Dollar (Reuters)
The Bank of Canada explicitly stated that it has concerns about disinflation — the slowing of the rate of inflation — and the strength of the Canadian dollar suppressing exports. Canada is the United States’ largest trading partner. The Bank of Canada did not issue a cut to their main interest rate, which remains at 1.0%, but they did confirm that the rate could be adjusted up or down in response to future economic data. It dropped to a four-year low of Canadian $1.1039 to the U.S. dollar immediately afterwards before recovering somewhat.