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BoC's Poloz shaves forecast, won't rule out interest rate cuts in future

OTTAWA - Bank of Canada governor Stephen Poloz says he has not ruled out a future cut to interest rates despite evidence disinflationary pressures appear to be waning and his belief that the global and Canadian recoveries are picking up steam. "We are neutral, that mean's a rate cut cannot be taken off the table at this stage," Poloz said during a news conference Wednesday. "It will depend on the data flow." Poloz made the comment after the central bank decided to keep its trendsetting overnight rate at one per cent, where it has been since September 2010.

Poloz expected to keep optimism on Canadian economy in check, dollar weak

OTTAWA - Bank of Canada governor Stephen Poloz has had a good run of it lately. In the central bank version of the children's boast "look ma, no hands," the first year governor has made the Canadian dollar disappear — 10 per cent of its value, at least — while keeping his hands firmly in pocket. Analysts anticipate more of the same Wednesday when the bank is expected to announce - for the 29th consecutive time dating back to September 2010 - that it is leaving its trendsetting overnight interest rate at one per cent.

Canadian dollar up amid strong retail data; traders look to rate announcement

TORONTO - The Canadian dollar closed higher Monday as traders took in a strong retail reading from the United States and looked ahead to the Bank of Canada's interest rate announcement. The loonie moved up 0.22 of a cent to 91.3 cents US. The U.S. Commerce Department reported that retail sales for March were up 1.1 per cent from February, higher than the 0.9 per cent rise that economists had forecast. The government also revised February to a 0.7 per cent gain, more than double its previous estimate. Sales had fallen in January and December amid severe winter weather.

Canadian dollar makes gains after manufacturing figures show improvement

TORONTO - The Canadian dollar extended its gains on Tuesday as a positive view of the manufacturing sector gave investors some confidence. The loonie rose 0.19 of a cent at 90.65 cents US, after a report from the Royal Bank suggested that Canadian manufacturers are seeing an improvement in business conditions.

Canadian dollar rises after surprise improvement in domestic economy

TORONTO - The loonie moved higher on Monday following a surprisingly strong improvement in Canada's economy during the first month of the year. The Canadian dollar gained 0.14 of a cent to 90.56 near midday. Statistics Canada said the economy grew by 0.5 per cent in January, above the 0.3 per cent prediction from economists. The increase marked an improvement from December when there was a 0.5 per cent decline in the economy.

Loonie closes higher amid weather-impacted housing data, interest rate forecasts

TORONTO - The Canadian dollar closed higher Tuesday as traders speculated about the pace of U.S. interest rate hikes and digested data showing how severe winter weather has impacted the American housing sector. The loonie was up 0.28 of a cent at 89.61 cents US. Charles Plosser, president of the Philadelphia Federal Reserve Bank, told CNBC he sees the federal funds rate at three per cent at the end of 2015 and four per cent at the end of 2016. The current target range for the federal funds rate is between zero and a quarter point.

Canadian dollar rises amid solid retail sales data, higher commodities

TORONTO - The Canadian dollar closed higher Friday in the wake of a better than expected reading on retail sales for January and rising commodity prices. The loonie was up 0.26 of a cent to 89.21 cents US as Statistics Canada said sales were up 1.3 per cent, against the 0.7 per cent rise that had been expected. The agency also reported that Canada’s annual inflation rate fell to 1.1 per cent in February from 1.5 per cent the previous month. But on a month-to-month basis, prices rose 0.8 per cent from January.

Weak loonie good for exporters, but bad for everything else in economy: report

OTTAWA - The weak loonie will almost certainly do more harm than good to the Canadian economy, argues a paper from a respected former Statistics Canada analyst that stands on its head conventional wisdom about currency impacts. The loonie has seen its value deteriorate more than 10 per cent from near parity with the U.S. over the past several months, with many economists expecting a further slide to the 85-cent U.S. range this year.

Poloz warns economy undershooting in first quarter, slow growth new norm

HALIFAX - The loonie fell sharply Tuesday after Bank of Canada governor Stephen Poloz delivered a gloomy speech saying slow economic growth is probably the new norm, requiring central bankers to keep interest rates low during a long period of stagnation. "The global economy may not be just suffering through a hangover from the financial crisis," he said in a speech to the Halifax Chamber of Commerce. "There are other, longer-term forces at work as well." He said some analysts have suggested the country may be facing a long period of weak economic growth.

Canadian dollar rises amid strong U.S. retail data, Chinese growth concerns

TORONTO - The Canadian dollar closed higher Thursday amid a stronger than expected read on U.S. retail data and Chinese growth worries. The loonie was up 0.51 of a cent to 90.47 cents US. U.S. retail sales for February rose 0.3 per cent following a 0.6 per cent drop in January, better than the 0.2 per cent climb that economists had expected. China growth worries have buffeted the currency and commodity prices this week.
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