US Trade Partners Look To Official Announcement from Trump; Canadian Housing Data Surprises Markets
Published March 8, 2018
The Bank of Canada kept interest rates steady at 1.25% yesterday, flagging ongoing concerns for the Canadian economy; the central bank stated that recent trade issues with the US and slower growth last quarter are prompting caution in their monetary policy guidance.
BoC Governor Stephen Poloz is set to speak in Halifax at 11:00 AM EST to unveil a new $10 bank note. Deputy Governor Timothy Lane will speak at 3:35 PM EST to discuss yesterday’s interest rate decision.
Figures on Canadian Housing Starts showed growth in the number of new construction efforts; month-on-month growth in Canadian building permits far exceeded expectations, with growth of 5.6% versus expectations of a -0.3% decline.
US President Donald Trump will make a formal announcement today at 3:30 PM EST regarding an executive order for tariffs on steel and aluminum imports; Trump plans to offer Canada and Mexico a 30-day exemption on the tariffs, which are subject to extension based on the progress of ongoing NAFTA talks.
President Trump’s recent willingness to compromise has raised hopes that the tariffs will not lead to a greater trade war between the US and its allies; this reversal by Trump came after more than 100 Republican House members signed an urgent letter to the White House pressuring the President to change course.
The European Central Bank kept its minimum bid rate at 0% as expected; ECB President Mario Draghi noted that the bank intends to keep to its plan of easing monetary stimulus.