Adam Katz

Interest Rate Outlook: Canada

Thanks for the inquiry SHB. Your comment actually facilitates my intended emphasis which I was trying to achieve by 'stating the obvious'. The point is that the reverse effect has been helping CPI trend lower. Should that unwind, we may see a double whammy. And to reiterate the other side of the argument, further U.S rate cuts should help to offset this and reduce the risk of a strong move in the exchange rate and thus reduce the chances of a sharp spike in CPI (at least in the commodity component).

Thanks for the feedback though. I am a new contributor and any comments on my piece will help make my future contributions an easier read.

Adam Katz