The Bank of Canada partially backed away from its commitment to hike interest rates, “Governing Council judges that the outlook continues to warrant a policy interest rate that is below its neutral range,” the Bank of Canada said in its statement. “Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook.” This means there is no set time for the next hike, which looks like it will be some time.
The combination of lower oil prices and a weaker economy caused Canada’s trade deficit to grow to a record level, the $4.6 billion deficit was double expectations. Oil exports fell 3.8% which had the most impact on the trade numbers.
Currently Close Range
USDCAD 1.3435 1.3350 1.3350-1.3457
EURCAD 1.5206 1.5096 1.5092-1.5218
GBPCAD 1.7665 1.7592 1.7543-1.7716
CA: Merchandise Trade December $-1.98 B $-4.59 B
Purchasing Managers’ Index February 49.5 48.9
US: International Trade December $-50.3 B $-59.8 B
Petroleum Status Report wk3/1
Crude Oil -8.7M Brls 7.1M Brls Gasoline -1.9 M Brls -4.2M Brls