Another recession hits Canada?
‘The dollar has tanked’ in wake of shock interest-rate cut
“One of the attractive features of the Canadian dollar has been the fact that rates in Canada are higher than in the U.S.,” one analyst says. “This differential has now been reduced.”
http://www.thestar.com/business/2015/01 ... e-cut.html
Expect even more job loss? Canada has no economy left. The falling dollar, will increase inflation due to more expensive imports, and also the increase in money supply will also increase inflation. Not really good - but Canada doesn't have any options. When rest of the world's economy is accelerating - Canada's declining.
“One of the attractive features of the Canadian dollar has been the fact that rates in Canada are higher than in the U.S.,” one analyst says. “This differential has now been reduced.”
http://www.thestar.com/business/2015/01 ... e-cut.html
Collapse in oil prices, then job loss AGAIN (Target, Sony, and others), now Canadian dollar tanking, it means imports are more expensive (which is essentially almost all goods sold in Canada), is Canada heading into recession again?
“The Bank was obviously spooked by the collapse in oil prices, which has already prompted some energy producers to cut planned investment and also jobs,” Capital Economics wrote.
The Canadian dollar, which fell more than a cent against the U.S. dollar on Monday, dropped sharply in the wake of the central bank’s rate cut. At mid-day, it was trading at 80.80 cents US, down 1.80 cents from Tuesday’s close.
The U.S. dollar is trading at 123.76 cents Cdn, up 2.69 cents.
Pound sterling is worth C$1.8719, up 3.72 cents, and US$1.5125, down 0.29 of a cent.
The euro is at C$1.4347, up 3.63 cents.
“The dollar has tanked. There is a run to the U.S. dollar,” Rahim Madhavji of Knightsbridge Foreign Exchange wrote in a research note.
“One of the attractive features of the Canadian dollar has been the fact that rates in Canada are higher than in the U.S. This differential has now been reduced.”
Expect even more job loss? Canada has no economy left. The falling dollar, will increase inflation due to more expensive imports, and also the increase in money supply will also increase inflation. Not really good - but Canada doesn't have any options. When rest of the world's economy is accelerating - Canada's declining.