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In his opening statement before  the House of Commons Standing Committee on Finance, Bank of Canada Governor Stephen Poloz said that although the Canadian economy was currently facing some headwinds, there was good reason to believe that the economy would accelerate in the second half of the year. “In this context, the Bank’s Governing Council judges that an accommodative policy interest rate continues to be warranted,” Poloz added and summarized:

“We will continue to evaluate the appropriate degree of monetary policy accommodation as new data arrive. In particular, we are monitoring developments in household spending, oil markets and global trade policy to gauge the extent to which the factors weighing on growth and the inflation outlook are dissipating.”

The USD/CAD pair, which advanced to 1.3470 area following the disappointing monthly GDP data, was last seen trading near yesterday’s closing level of 1.3450.