Canada Prime Minister Stephen Harper, claims the monetary policy of the Bank of Canada is appropriate even though it has started a 5.9 percent decline in the country’s currency.
“We have every reason to have confidence that the Bank of Canada has appropriate monetary policies in place, and what matters is not the movement in the Canadian dollar but whether it’s at an appropriate level given various economic realities,” Harper said in an interview at his Ottawa office today.
Removing a bias to raise interest rates, Governor Stephen Poloz helped send the Canadian dollar to a four year low. According to Adrian Miller, director of fixed income strategies at GMP Securities LLC in New York, “the prime minister is walking a fine line as to not appear to be applying any indirect pressure on Poloz and the Bank of Canada.”
Harper said, the dollar’s decline reflects strength in the U.S dollar, which “has been undervalued, the depreciation really isn’t a drop in the value of the Canadian dollar.” We can understand this situation as a global rise in the value of the American dollar.
The Canadian Dollar known as a loonie, has touched four-year lows this month on speculation Poloz will present a bias for looser monetary policy next week. For jobs in Canada, click here.
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