Bank of Canada Governor Mark Carney said his policy interest rate is likely to be unchanged for some time after inflation slowed more than projected, while reiterating his eventual next move will probably be an increase.
Canadian employment rose almost six times faster than economists forecast in April, led by private- sector and full-time positions, creating the largest two-month increase in more than 30 years and leading investors to raise bets on higher interest rates.
Canada’s dollar dropped to the lowest level in almost three weeks as commodities and stocks tumbled a day after the Federal Reserve said the recovery in the U.S., the nation’s largest trading partner, will be slower.
Bank of Canada Governor Mark Carney said U.S. efforts to prevent deposit-taking banks from trading with their own money could damage markets in government bonds and other securities unless the plans are revised.
Canada’s dollar rallied to its strongest level in a week against its U.S counterpart, tracking gains in global equities and commodities, amid speculation slowing growth in China will spur more monetary stimulus.