BOC’s Poloz Believes Current Stimulus is Warranted

Bank of Canada Governor Stephen Poloz said the Canadian dollar’s recent drop is “icing on the cake” for the nation’s exporters as accelerating U.S. growth lifts the economy.

The decline of Canada’s currency reflects broad strength in the U.S. dollar, which is appreciating against currencies including the Australian and Canadian dollars and the euro, Poloz told the Senate banking committee. “That can have an icing on the cake effect on exports,” he said.

The Bank of Canada predicts the country will increasingly rely on exports to drive economic growth, taking over from debt-burdened consumers. The central bank forecast this month exports will contribute an average of 1.4 percentage points to gross domestic product this year and next, double the 0.7 points in 2013.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.