MID-DAY: BoC Governor looks to nurture Canada’s economic sweet spot; US dollar slumps after Trump fires Tillerson
Stephen Poloz says Canada’s economy is reaching a sweet spot where companies will look to invest to continue growing. The Bank of Canada Governor says it’s up to federal officials to nurture this movement. Analysts say this could mean Poloz will look to increase the interest rate very slowly form its current 1.25 per cent to at least 2.5 per cent in the future.
The Loonie has sunk lower following these comments, down to 77.40 cents US.
On Bay Street the TSX is gaining, up 64 points to 15,669 and across the border the Dow is up to 25,258. This follows news that the pressure is off the Federal Reserve to add more rate hikes to battle inflation as policymakers say recent Consumer Price Index data shows the US rate of inflation is in line with expectations.
Another White House shake up has weighted the US dollar to a three-day low as Trump fired Secretary of State Rex Tillerson without giving any reasons.
Oil is coming back from a Monday slump following reports that US crude production is expected to be high this year. The price of oil is up to 61.86 a barrel.
Gold has also bounced back from its start of the week slide up to 1,326 an ounce.