{"id":45614,"date":"2019-04-24T09:21:39","date_gmt":"2019-04-24T14:21:39","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45614"},"modified":"2019-04-24T09:21:43","modified_gmt":"2019-04-24T14:21:43","slug":"loonie-tumbles-as-bank-of-canada-capitulates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45614","title":{"rendered":"Loonie Tumbles As Bank Of Canada Capitulates"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/news\/2019-04-24\/loonie-tumbles-bank-canada-capitulates\">Loonie Tumbles As Bank Of Canada Capitulates<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Add The Bank of Canada to the list of flip-flopping central banks as it has now&nbsp;<strong>fully abandoned its bias toward raising interest rates as the economy grapples with a slowdown<\/strong>, bringing its policy into line with the Fed.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em><strong>\u201cGoverning Council judges that an accommodative policy interest rate continues to be warranted,\u201d&nbsp;<\/strong><\/em>officials led by Governor Stephen Poloz said in the statement.<\/p><p><strong>\u201cWe will continue to evaluate the appropriate degree of monetary policy accommodation as new data arrive.\u201d<\/strong><\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The Bank of Canada is keeping its key interest rate unchanged as it releases a downgraded 2019 growth forecast that includes a prediction the economy nearly came to a halt at the start of the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Bank of Canada slashed its GDP growth forecast to 1.2% y\/y in 2019, from 1.7% previous, and&nbsp;<strong>projecting growth of just 0.3 per cent in the first quarter of 2019.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2019-04-24_7-06-04.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2019-04-24_7-06-04.jpg?itok=K4NfOG1K\"><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The decision leaves the trend-setting rate at 1.75 per cent for a fourth-straight announcement &#8211;&nbsp;<strong>a pause that followed governor Stephen Poloz&#8217;s stretch of five hikes between mid-2017 and last fall.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The reaction makes sense &#8211; a sudden weakening in the Loonie&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm368E.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">And Canadian bond yields are tumbling&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm780C.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm780C.jpg?itok=-QELJz7A\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Loonie Tumbles As Bank Of Canada Capitulates Add The Bank of Canada to the list of flip-flopping central banks as it has now&nbsp;fully abandoned its bias toward raising interest rates as the economy grapples with a slowdown, bringing its policy into line with the Fed. \u201cGoverning Council judges that an accommodative policy interest rate continues [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1861,353,534,4318],"class_list":["post-45614","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canadian-dollar","tag-gdp","tag-monetary-policy","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45614"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45614\/revisions"}],"predecessor-version":[{"id":45616,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45614\/revisions\/45616"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}