BoC Monitoring Loonie After September Rate Hike

Bank of Canada Deputy Governor Tim Lane, answering questions from the audience following a speech in Saskatoon, Saskatchewan, said the the central bank is closely monitoring the impact of a stronger Canadian dollar.

‘As the Canadian dollar is strengthening, we are certainly watching that closely and will be taking that into account pretty strongly in making our decision’


usdcad Canadian dollar graph, September 18, 2017

Lane said that each rate announcement is ‘live’ and the central bank stressed in July that its decisions are data-determined
Interest rates are still “quite low” compared to their “neutral” levels, but that “still seems appropriate” given the central bank doesn’t know how the economy is going to react to interest rate increases. For example, households are way more indebted than they were the last time interest rates were near neutral

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza