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Forex News

Rate cuts are a blunt tool but can help consumer confidence

In an interview with BNN Bloomberg on Thursday, the Bank of Canada (BOC) Governor Poloz said rate cuts are a blunt tool but can help consumer confidence.

Additional quotes:

The level of coordination among central banks is very strong.

Finance Minister is speaking Friday, ‘we’ll see what he has to say’ on stimulus.

We already had information to suggest we should be moving on rates.

We’re ‘back to normal’ on housing.

If consumer confidence erodes, expect a downdraft on housing but cuts could counteract.

Interest rates are likely to be lower for the forseeable future.

Central banks may be dipping into extraordinary tools.

We may need to develop quicker-acting fiscal tools, that would shift some of the burden.

USD/CAD reaction

Amid some optimistic comments from Governor Poloz, the Canadian dollar is seen recovery ground against its American peer, with USD/CAD easing back around 1.3420.

The spot hit a multi-day high of 1.3439 in the last hour. Despite the pullback, the CAD remains on the offers amid tumbling oil prices.

 

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