Around the globe, banks are trying to improve their capital ratios. In Canada, the central bank is all alone in trying to get the banks to lend more and let their capital ratios drop.
Rates will be held at their abnormally low levels through mid-2010, BOC Governor Carney repeats in a speech that just hit the wires. He did not mention the strong Loonie today, a shift after two mentions in recent weeks. Looks like the move back to the 1.14 area meets with the Governor’s approval.
USD/CAD trades now at 1.1337.
