Latest news from WorldWay: June 23— Canadian Finance Minister Joe Oliver stated on Monday (June 23) that the rise of the Canadian dollar against the US dollar does not indicate that the market perceives inflation issues in the country and an imminent interest rate hike.
Oliver told CNBC: “If you look at the relationship between energy prices and the Canadian dollar, it becomes very clear that they are closely related. Therefore, I believe that the rise of the Canadian dollar does not necessarily indicate a problem. They (the market) may indicate just the opposite.”
He stated that inflation is currently around 2%, which is a healthy level, and he expects the inflation rate in Canada to remain around 2%. He believes that interest rate shocks are unlikely to occur and are not the biggest threat to the market.
Last Friday (June 20), data showed that Canada’s May Consumer Price Index (CPI) increased by 2.3% year-on-year, marking the largest increase in 27 months.
Oliver also mentioned the need to pay attention to the Canadian housing market, but he expressed that he is not particularly worried about the housing market, as consumer inflation is under control. He pointed out that Canada’s weak exports reflect the sluggish global economy.
