Paul Martin’s Business Update – February 18th, 2015
Watch for the Canadian dollar to extend its decline.
That comes from the economists at CIBC World Markets who predict we could see as much as three cents shaved off the value of our buck when compared to the American Greenback. Good news for exporters but not so good for anyone looking to travel south or importers, such as those interested in buying the mixings for a salad at this time of year.
The economists say the Bank of Canada’s impatience for growth sparked the recent interest rate cut, a move that caught everyone by surprise. And they expect another cut in the near future, which will put the pressure on the dollar. Further, they are expecting the Americans to begin raising interest rates late this spring which will make the Canuck Buck even less attractive, pushing it down further.
At the heart of this development is the price of oil. It has been a strong catalyst for the Canadian economy and now that it is less valuable, volumes may not be changing much but it is cutting into revenues we bring into this country.