Bank of Canada, Inflation Report in focus | Trump Reiterates Fed Criticism
Published January 22, 2020
This morning, the Canadian dollar was trading flat before the Bank of Canada monetary policy meeting and inflation data. Today, the market will be closely watching the Governor Stephen Poloz press conference which is scheduled at 11:15 EST. It is expected that the BOC will leave the overnight rate at 1.75. At the time of writing, the Canadian dollar was trading at 1.3060 levels against the US dollar.
President Donald Trump has launched a fresh attack on the US Central Bank for its handling of the world’s biggest economy. At the World Economic Forum in Davos, the President criticized the Federal Reserve and its chairman Jerome Powell for failing to keep interest rates at low levels. Trump said that the Central Bank raised rates too quickly and has lowered them too slowly.
Trump’s top Economic Adviser Larry Kudlow said that sub-zero yields and aggressive Central Bank practices are “ineffectual,” arguing that they are no substitute for pro-growth fiscal policy. Kudlow added that negative rates are not a good idea as they are bad for savers and investors.