Mar 06, 2013
By Scott Walker
The struggling Canadian dollar could sink further today.
The Bank of Canada will issue its regular policy statement on interest rates. It’s expected to leave the trend-setting rate at one per cent. But analysts are saying they expect the central bank to soften its statements about when rates might begin to rise again.
Derek Burleton is a senior economist at TD Bank. He says a delay in higher rates could affect the loonie, and that would help the central bank increase inflation by making imported goods more expensive. Burleton says inflation is too low for a health economy, and a lower dollar would push prices up.
The bank has kept the overnight rate at one per cent for two-and-a-half years. The betting now is that it might stay there until some time late next year.