-Bank of Canada
The Bank of Canada decided to maintain its overnight interest rate unchanged at 0.75% following a shocking move to cut borrowing costs in January. Central bank Governor Stephen Poloz appeared to be somewhat optimistic about the economy's recent performance, dampening speculation of another interest rate cut to cushion Canada's economy against negative impact of the oil price crunch. Poloz admitted that the oil price shock has had a negative impact on the nation's economy, but highlighted that the country's performance in 2014 was supported by stronger growth in non-energy exports and investment, instilling some confidence in the country's economic resilience and mitigating negative impact of plunging oil prices. Statistics Canada reported Tuesday the economy expanded 2.4% on an annualized basis in the fourth quarter of 2014. Nevertheless, the BoC expected the worst yet to come, with the majority of the devastating impact from lower oil to be reflected in first half of 2015. In addition, falling inflation caused by declining oil prices was one of the aspects the central bank outlined in its statement. Yet, it said that consumer prices have been sliding according to the BoC's expectations.
The US was said to be the main driver of growth in the global economy, which would be also beneficial for Canada and its export sector.
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