How quickly everything changes. Canadians have been readying for an interest-rate rise for months, but the last few days’ worth of global market turmoil and the rapid depreciation of the loonie may put an end to that.
“For the Bank of Canada, the broader story is the European risk bleeding over in Canadian growth,” according to TD Securities economist Eric Lascelles in an interview with QMI Agency. “So I think the chances of a June rate hike have diminished in recent weeks.”
Then again, a lot of Canadian economists figured the loonie would stay strong against the dollar thanks to a thriving economy at home. So what happens in the next few months is still anyone’s guess.