Before Mark Carney took to the spotlight for his final policy statement as the Governor of the Bank of Canada the ‘Loonie’ was able to advance modestly on its American counterpart.
The Canadian Dollar Exchange Rate was in the region of 0.9646 against the US Dollar as of 15:35 GMT
After hitting its lowest level against the US Dollar for almost a year yesterday in the aftermath of the publication of better than forecast US house price and consumer confidence data, the Canadian Dollar edged up to 96.40 in the hours before the Bank of Canada rate announcement.
Economists broadly expected Carney to retain the present benchmark interest rate and make an inference relating to the possibility of raising rates, as he has done for the past year.
As one London-based currency-market analyst asserted ‘Every time we see Carney he stands pat on policy, doesn’t change the interest rate [and] we always have a stronger Canadian Dollar on the back of it. We’ve seen a massive selloff in the Canadian Dollar just because people are really expecting an end to US quantitative easing, and I think it’s completely oversold at this point. In the next few months, I think we’re going to see a correction in the Canadian Dollar.’
Industry expert’s expectations were largely answered as while policy makers intimated that Canada’s economic expansion has been more rapid and inflation slower than forecast, Carney held the main interest rate at 1 per cent for a 22nd consecutive month.
In a statement issued with the decision it was asserted that: ‘The considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target.’
The central bank also restated its estimation that the nation’s economy won’t reach ‘full capacity’ until the year after next.
Similarly, the Bank of Canada went on to stress once more that persistent ‘Loonie’ strength is hampering export growth. Exports, which are responsible for roughly a third of Canadian GDP, have been limping along with the slowest recovery in foreign trade for over sixty years.
The Canadian Dollar was little changed against the ‘Greenback’ in the immediate aftermath of the announcement.
The next time Carney makes a policy announcement it will be in the UK, as Governor of the Bank of England. Stephen Poloz will take over from Carney next week.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9646 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7454 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6378 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0028 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1914 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5661 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0358 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3415 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8384 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9976 <
(Correct as of 15:35 GMT)
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