Tuesday, 17 January 2012

A Fairly Dovish Bank Of Canada, But No Hint Of Easing

Canada's central bank, holding its rate steady at 1.00%, said it sees stronger external risks now, with Europe's recession likely to be deeper and longer, and US growth to be slow. It says Canada's economy will likely underperform earlier expectations, as external risks drag on exports. "There is no indication that the Bank is seriously thinking about shifting away from the current 'wait and see' stance any time soon," says CIBC. This is a bank on the sidelines, and likely to stay there all year -- and next, CIBC says. The gloomy domestic picture, and gloomier global picture, took wind from CAD's sails, but CAD is still up on day.