“The Bank of Canada helped send the Canadian dollar lower again today as it highlighted the benefit of a weaker currency and cited the potential risks ahead,” Michael Babad wrote for The Globe and Mail today. Babad continued, “As The Globe and Mail’s Barrie McKenna reports, the central bank under Governor Stephen Poloz held its neutral stance, giving no signal as to where its benchmark interest rate could be headed, or when. As expected, it held the key overnight rate at just 1 per cent. ‘Global economic growth in the first quarter of 2014 was weaker than anticipated in the [monetary policy report] and recent developments give slightly greater weight to downside risks,’ the Bank of Canada said. So called-core inflation, which strips out volatile items, is still ‘significantly below’ its target. The central bank noted that the economy expanded at a modest pace in the first quarter of the year – by just 1.2 per cent at a annual rate – notably because of the weather.” Read the full article here.
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