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While delivering a prepared speech to a  business audience in Halifax, Nova Scotia, Bank of Canada Deputy Governor Lawrence Schembri said that the current degree of monetary policy stimulus remains appropriate adding that the governing council will pay particular attention to global developments and their impact on Canadian growth and inflation.

The USD/CAD pair retreated slightly from session highs and was last seen trading at 1.3232, adding 0.08% on the day. Below are some additional key takeaways as reported by Reuters.

“In contrast to global economy, Canadian data since July have surprised on the upside.”

“Bank will continue to conduct monetary policy appropriate to Canada’s circumstances, and will ground decisions in policy framework.”

“Inflation in Canada has been well behaved  and controlled, economy is operating close to its potential.”

“Evidence of close correlation between underlying inflation and output gap bolsters confidence in bank’s inflation projections and framework for conducting monetary policy.”

“With already low interest rates, inverted bond-yield curve is more likely a sign that investors foresee weaker long-term growth.”

“Biggest downside risk remains trade war between US  and China given Canada’s reliance on international trade; escalating tariffs and uncertainty reducing global trade more than forecast.”

“Economy is clearly past its earlier soft patch, with strong labor market and rebounding housing market.”

“National accounts data suggest some of the economy’s strength could be temporary, as export strength comes from rebounding shipments of crude oil while imports were surprisingly weak.”

“Recent data point to slower momentum in china and euro area, risk of recession in Germany while US economy continues to moderate but remains solid.”

“Core inflation measures around 2% in July consistent with the idea that the economy’s output gap is essentially closed.”