CANADA FX DEBT-C$ falls after Bank of Canada cuts rate
Tue Apr 21, 2009 3:50pm BST


* Bank of Canada cuts rate 25 basis points to 0.25 pct

* C$ dips to 79.96 U.S. cents after rate decision

* Bond prices mostly higher across the curve



TORONTO, April 21 (Reuters) - The Canadian dollar weakened against the U.S. dollar on Tuesday morning, touching its lowest level in nearly three weeks, after the Bank of Canada cut its benchmark interest rate to 0.25 percent, but made no explicit promise to take unconventional measures to boost the economy.

The central bank cut its key overnight rate to a historic low of 0.25 percent from 0.50 percent and predicted a deeper recession than it had previously forecast .

It also took the unusual step of providing guidance on rates, saying the overnight rate would stay at 0.25 percent until mid-2010.

"It certainly speaks to the dire situation in the economy," said Charmaine Buskas, senior economics strategist at TD Securities.

"What struck us was the unprecedented level of transparency that the bank used in this statement in its commitment to keep the overnight rate at 0.25 percent until the second quarter of 2010. That really speaks to just how weak economic conditions are and just how much downside there is for the economy.

怪不得，美金换加币升了！！
0。25 利息？？，我没有看错把？？

本帖最后于2009年4月21日17年前，由byronsun编辑

P=2.25%，如果各银行跟进相同幅度的话。

那样，我的贷款利率就只有1.45%了！

如果手里有美金的话，最近可以观察一下汇率，应该会有上长趋势。。。。

美金还不贬值，折腾人吗不是

[quote name='bee']美金还不贬值，折腾人吗不是[/QUOTE]

会吗？

[quote name='1979']会吗？[/QUOTE]
呵呵，别问我，问简心，

能解释一下么？

[quote name='简心。。。']如果手里有美金的话，最近可以观察一下汇率，应该会有上长趋势。。。。[/QUOTE]

From a techinical point of view, decreased interest of a currency makes the currency less attractive to invest,therefore causing a "over-sold" currency. When people sold Currency A to buy Currency B, it increases the demand of Currency B, and the supply of Currency A. Apparently Currency A is going to depreciate against Currency B.


From a Macro (practical economic) view,

The Bank of Canada delivered one last 25bps rate cut today to leave the overnight rate at an effective floor of 0.25%. This is obvious a monetory policy to relieve the recession- pressure.

The Bank noted that this is the floor for the overnight rate, suggesting that rates will go no lower. What did come as a surprise though was the
astonishing transparency by the Bank as it explicitly stated that rates will remain at this level until June 2010. This level of transparency is unprecedented but it speaks to the dire state of the
economy and a desire to control expectations.
In the communiqué, the Bank admitted that given the synchronized nature of the recessionary headwinds, the global economic downturn has intensified. As such, the recession in Canada has also “been deeper than anticipated.” The Bank further downgraded not only its economic forecast, but also its estimate of potential growth.

Based on all other analysis, the "Recession" seems to be further than expected, which makes peole LOST confidence of the Canandian Economy, reflecting on the Canadian Dollar!

Overall, above only expresses my PERSONAL idea.

学习！！！

美金短期内一定是升值的，为什么理论大家就不用研究了，知道升值就行了。
美金长期看以后是一定会贬值的。不过这个长期很长。