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Canada’s Interest Rate May Drop to Zero: Report

Posted May 22, 2015

Under Economic Issues, International Trade Issues


The Bank of Canada may be forced to cut interest rates to zero in the next six to 18 months as a rising Canadian dollar threatens the economic recovery, according to Fidelity Investments’ David Wolf.

Rebounding oil prices have spurred Canada’s currency to the biggest rally among Group of 10 nations versus the U.S. dollar in the last three months.

Continued appreciation will endanger the non-commodity export revival central bank Governor Stephen Poloz is counting on to lead the economic recovery, and will probably prompt him to join global peers in cutting the benchmark interest rate to zero, Wolf said Thursday during the Bloomberg Canada Economic Summit in Toronto. Click here to read more.