BOC's Lane: BOC 'paying close attention' to impact of stronger Canadian dollar

Author: Adam Button | Category: Central Banks

BOC's Lane in Saskatoon

  • BOC pays close attention to impact of higher interest rates
  • Protectionism could lead to lower Canadian potential growth
  • Economic data show growth in Canada is becoming more broadly based and self-sustaining
  • Seeing widespread strength in business investment, exports, along with global economic expansion
  • Trade negotiations could have implications for economy, which we would need to consider
  • Watching trade developments very closely

A bit of jawboning from Lane and USD/CAD is quickly up to 1.23. I think the market is overreacting with the 70-pip rally in the pair. The BOC often says it's watching CAD closely.

My takeaway is on trade. The BOC is worried about NAFTA negotiations and potential US trade changes.

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