Friday, 23 January 2015

Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast to Drop on Canadian Inflation

The Canadian Dollar took a tumble this week when the Bank of Canada (BOC) made a surprise announcement, slashing interest rates from 1.0% to 0.75%.
The BOC was forced to cut rates after Canada’s biggest commodity, oil, depreciated by nearly 60% in the past six months. With no hope in sight for oil gains, Canada’s inflation is likely to have tanked, along with the Canadian Dollar.
However, some economists believe the rate cut could boost the North American economy far quicker than forecast.
Economist Peter Hall stated: ‘The rate cut and the drop in the ‘Loonie’ comes at a time when manufacturing has really been humming, and it’s possible we’ll start seeing results a lot sooner than even the Bank of Canada is expecting.’

GBP and CAD Exchange Rates Fall on BOC and BoE Announcements

Meanwhile, the Pound Sterling exchange rate also took an unfortunate tumble this week due to central bank decisions. The Bank of England (BoE) announced that all members of the Monetary Policy Committee (MPC) had voted unanimously to keep interest rates at the current 0.50% benchmark.
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