ECB Leaves Monetary Policy Unchanged | Alberta Premier Urges Feds to Fund Oil-by-Rail
Published October 25, 2018
There was no policy change from the European Central Bank, with the latest interest rate decision made this morning. President Mario Draghi is expected to elaborate further on risks to euro area growth in the press conference to follow. The euro strengthened slightly against the greenback ahead of the monetary policy decision trading at 1.1403.
Markets are preparing for varied data from US durable good orders to be published this morning. Core durable goods orders are expected to improve to 0.5%, as durable goods orders are forecast to fall to -1.3%. This comes after strong gains of 4.5% in the preceding release. Jobless claims are expected to rise to 214,000.
The Bank of Canada raised interest rates yesterday to 1.75%, as was widely expected. The central bank expressly noted intentions to prepare markets for additional interest rate increases as required. The bank is forecasting that inflation will remain at 2% as the economy is functioning at near capacity.
Alberta Premier Rachel Notley has called on the Canadian Federal Government to get behind funding for the oil-by-rail business as pricing for Western Canadian Select trades at US$42.00 a barrel. The heavily discounted Canadian crude is estimated to lose private producers and governmental institutions almost $30 billion per year.