Canadian fin min speaking on CNBC in the wake of Friday’s higher CPI data

  • does not see inflation as a coming problem
  • not especially worried about housing market but still a concern
  • consumer inflation contained
  • looking at inflation around 2%, a “pretty healthy” level
  • its ” pretty obvious” that CAD is affected by energy prices
  • not obvious that CAD strength suggests that there is a problem
  • weakness in Canadian exports reflect weak global economy

USDCAD little changed at 1.0730 near its Asian lows of 1.0720

I’m not sure whether the BOC would share his relative complacency over rising inflation levels