Wednesday, July 15, 2015
Bank Of Canada Cuts
This could raise the animal spirits of Canadian realtors, but that will not last if people start losing their jobs. Economists have declared the Canadian "technical recession" as being "contained," but that is exactly what the consensus was in mid-2008 in the United States.
If Yellen remains hawkish, this could be fairly disastrous for the Canadian dollar (which is the whole point of the rate cut). The foreign exchange implications of a September Fed rate hike, given the uncertainty in Europe, are impressive. Janet Yellen could very well have her own "Trichet moment."
(c) Brian Romanchuk 2015