Seeking Alpha

Loonie dives as BOC leans dovish

  • "Inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance," says the bank, maintaining its benchmark overnight lending rate at 1%, but clearly considering easier policy down the road.
  • The loonie (FXC -0.3%) takes out another multi-year low, now buying $0.9062, and at its weakest vs. the greenback in about four years.
  • Related ETFs: EWC, FXC, CAD, CNDA, FCAN, EWCS
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Comments (7)
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    go figure. there really was one capitalist left in America. "he's exiting now."
    22 Jan 2014, 10:49 AM Reply Like
  • James Duade
    , contributor
    Comments (305) | Send Message
     
    The Bank of Canada should consider loaning it's money out to all of the wonderful infrastructure and resource development projects occurring in Canada. Can you imagine the multiplier effect of all that? Purchases of construction materials, infrastructure development, employment, taxes, long term projects that create generational wealth? Why not focus the spending on Canada's bountiful natural resource projects? That would be a fantastic stimulus program in my opinion--assuming the projects are vetted.
    22 Jan 2014, 11:01 AM Reply Like
  • SharkDude
    , contributor
    Comments (694) | Send Message
     
    Absolutely ridiculous. So after watching the US flounder for 5 years after printing 4 trillion dollars they are going to try to do the same thing?
    22 Jan 2014, 11:04 AM Reply Like
  • The_Hammer
    , contributor
    Comments (4298) | Send Message
     
    who the hell benefits from inflation? Surely Not the "little People"
    22 Jan 2014, 11:46 AM Reply Like
  • Chris Lau
    , contributor
    Comments (2483) | Send Message
     
    Canada is USA circa 2008. USA is far ahead of Canada now in exiting QE. Be careful, moves like this suggest Canadian dollar-denominated assets will fall relative to the US dollar.
    22 Jan 2014, 12:37 PM Reply Like
  • marpy
    , contributor
    Comments (1105) | Send Message
     
    I think the low Canadian dollar will fix any Inflation problems the bank thinks they have. I think that they are also focusing on the wrong thing and if the focus was on the housing bubble that is occurring and lack of quality jobs outside the resource industry, they would be miles ahead. JMO
    22 Jan 2014, 01:31 PM Reply Like
  • User 509088
    , contributor
    Comments (1227) | Send Message
     
    there's inflation and then there's inflation. people's food costs and shelter costs and energy costs are all going up. their employment income is still going down.

     

    there is no inflation because the boc has decided to see no inflation.

     

    it is of the same kind of re-visioning of reality as the conservative gov't's recent insistence that tar sands oil is green. it wasn't until a few weeks ago, faced with a massive possible revolt on the part of gov't scientists, that the gov't walked that one back.
    22 Jan 2014, 02:15 PM Reply Like
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