The Loonie’s Making a Comeback

The Background 

The loonie had a good day yesterday, bouncing back from a four-week low that was amplified by comments Bank of Canada governor Stephen Poloz made on Wednesday. While many financial experts were expecting Poloz to confirm that interest rates would continue to rise, the BoC representative did no such thing, saying, “There is no predetermined path for interest rates from here. Although we are confident that the economy has made significant progress, we cannot be certain of exactly how far there is left to go.” He even suggested that rates could go — gasp! — in either direction. Globe and Mail

What Else You Need to Know 

At the end of the day yesterday, the Canadian dollar was up to US $80.46, which is a 0.4% increase from Wednesday’s dip. The boost is partly due to today’s GDP announcement, which economists expect to still show growth (0.1%), though it’ll be a little slower than last month’s 0.3%.

What’s Next? 

The Bank of Canada’s next rate announcement is scheduled for October 25.