Quote:
Originally Posted by Fire
Canada shouldn't reduce rates until the US do. The CDN dollar is terrible already, we don't need to make it any worse.
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Quote:
Originally Posted by blankall
I've been reading a lot about how the lack of economic growth is now affecting the CAD. At a certain point you have to loosen monetary policy or the currency gets too devalued from lack of economic growth.
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I think with Canada and the US having a relatively open trade market, if Canada were to move first rather than directly weaking the CAD could expect to see the trade balance between the two countries compensate (especially when our unemployment rate is higher). More exports, more manufacturing increasing GDP should be the first response of the Canadian market if the BOC moves and the Fed doesn't.
There is the big wild card of irrational trade action that could be taken in 2025 if things go the wrong way in November, and it's real enough that people need to careful about establishing those supply chains, but usually cost trumps risk,