Canadian Interest Rate at Historic Lows
March 3, 2009
As a consequence of the severe economic downturn, which has crippled demand for many of Canada’s key exports, Q4 2008’s current account recorded a deficit. This deficit totals C$7.49bn and is the first of its kind in over a decade. This has sparked talk of Canada moving towards a twin deficit position as the Government ramps up initiatives to stimulate the domestic economy. For many years Canada has enjoyed the status as the only G7 nation to remain in twin surplus territory, so for them this deficit has been a particularly hard blow . Overall however the market has viewed the deficit as a by product of the global economic conditions rather than specific to the Canada, although this did little to prevent the US Dollar firming up against the Canadian Dollar.