Loonie remains frozen in place despite Canadian developments
Statistics Canada’s GDP figures were in line with projections yesterday, which resulted in very little reaction in terms of the loonie. However, beyond the 1.3% growth figure, it is important to remember that on the whole, our economy appears to be on track and showing encouraging signs, particularly in terms of manufacturing and the energy sector. Among the challenges to be overcome, the service sector has slowed as has the real estate sector, which will now have to come to grips with stricter regulations.
In his fiscal update, federal Finance Minister Bill Morneau announced that he anticipates a lower deficit for 2017-2018, with a decline from $29 billion CAD to $27.8 billion CAD. Moreover, in order to stimulate the economy, Morneau’s Liberal government will boost infrastructure spending by an additional $81 billion over the next 12 years, an unprecedented amount.
Today, we’ll have a look at the second-last key rate decision for 2016 from the U.S. Federal Reserve at 2 p.m. Although the status quo is expected to prevail, pundits will be hanging on Janet Yellen’s every word looking for clues as to what December’s decision will be.
