The Bank of Canada will be taking a second hard look before it raises rates again as it was not expecting the wide criticism and the impact the surprise interest rate hike had earlier this month,
That hike followed their telegraphed rate hike in July.
With the Canadian dollar touching over 83 cents last week and putting exporters under more pressure, Bank Deputy Governor Timothy Lane said in a speech Monday night that the bank will “be taking that into account pretty strongly in making our decisions.”
This after the dollar in U.S. terms moved from $1.38 back in May to under a $1.22 last week.
WATCH: What an increased interest rate means for Canadians
This could very well put the bank on pause for next month’s scheduled rate announcement but does not negate a further rate increase before the end of the year. So any relief for exporters may be short-lived.
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