- Carney says BOC’s intervention policy says there must be persistent strength in the currency which has significant impact on the economy.
While the CAD has been persistently strong, it has not had a hugely negative impact on the economy. It has probably kept the BOC less aggressive in terms of hiking rates than the RBA which has hiked despite big gains in the currency. Canada’s US focus has played a role in that decision while AUD is dealing mainly with a much more robust Chinese economy.
