Bank Of Canada Cuts

In a non really surprising step, the Bank of Canada cutting rates again. This in all probability the depression inwards rates, equally the coin markets stopped surgical physical care for properly at a lower policy rate. Meanwhile, "quantitative easing" makes no feel inwards the Canadian context. (I described the Canadian monetary arrangement inwards Understanding Government Finance, as well as the lack of banking concern reserves agency that it operates somewhat differently than other systems, such equally the United States.)


This could heighten the brute spirits of Canadian realtors, simply that volition non end if people get-go losing their jobs. Economists convey declared the Canadian "technical recession" equally existence "contained," simply that is precisely what the consensus was inwards mid-2008 inwards the United States.

If Yellen remains hawkish, this could endure fairly disastrous for the Canadian dollar (which is the whole scream for of the charge per unit of measurement cut). The unusual commutation implications of a September Fed charge per unit of measurement hike, given the doubtfulness inwards Europe, are impressive. Janet Yellen could really good convey her ain "Trichet moment."

(c) Brian Romanchuk 2015