Saturday, May 30, 2015

Loonie approaches lowest level in a month as economy shrinks

The Canadian dollar approached the lowest level in more than a month as a first-quarter economic contraction keeps alive speculation the Bank of Canada will cut interest rates again this year.
The currency fell against all but one of its major peers after Statistics Canada said gross domestic product fell at a 0.6 percent annualized pace, the most since the 2009 recession. The Bank of Canada forecast for flat growth in the quarter. The central bank cut rates in January as “insurance” against collapsing prices of crude oil, Canada’s largest export, while forecasting faster growth in the latter part of the year. (more)

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