Worry about the Trump effect on our economy has Bank of Governor Stephen Poloz nervous.
The protectionist policies of the new administration could see the Bank further cut interest rates according to Poloz at the news conference following yesterday morning’s rate announcement.
Worried about downside risks of Trump materializing Poloz said “Yes, a rate cut remains on the table and it would remain on the table if those downside risks were still present.”
The statement had an immediate chilling effect on the Canadian dollar that had rallied over three cents so far this year, sending the loonie down over 1.3 cents in late trade.
The knock off effect of a Trump presidency are many-fold and the Canadian dollar is one investment that is already being roundly affected.
The dollar continues its path lower this morning, down 1.6 cents from yesterday’s high.