Canda dollar rate

The loonie is likely to extend its recent recovery if the Bank of Canada’s policy decision Wednesday proves hawkish. The Canadian dollar rose 0.3% to C$1.3404 on Tuesday ahead of a policy makers meeting in Ottawa the next day. The currency, on track to reach its strongest level since May 10, was the second-best performer among its peers in the Group of 10. The Australian dollar gained the most on Tuesday after the Reserve Bank of Australia surprised by raising rates.

OTTAWA, June 12 (Reuters) - Despite the fastest monetary tightening cycle in the country's history, Canada's economy is still running hot, which forced the central bank to crank its Analysts are betting on another rate hike in July, to help the Bank of Canada bring inflation back down to its 2% range. Here are some factors that are keeping demand robust in the Canadian economy. EXTENDED MORTGAGE AMORTIZATIONS Many of Canada's major banks allowed holders of variable rate mortgages to extend their amortization period in order to keep their payments at nearly the same level, temporarily blunting the impact of higher borrowing costs. As a result, higher borrowing costs have so far caused less That has partially helped the recovery in home prices, which have jumped 17% in the three months since January, after a year-long slump. "It's really something that has been a game changer in terms of how monetary policy is transmitted to the economy," said Randall Bartlett, senior director of Canadian economics at Desjardins. "A lot of households have been able to continue spending in a way that they wouldn't otherwise be able to, and to stay in their homes in a way that they wouldn't otherwise be able to." POST-PANDEMIC SPLURGE Canadian "It seems like a lot of Canadians are looking to catch up on experiences that they weren't able to have for a couple of years," like traveling and eating out, Bartlett added. GOVERNMENT SPENDING To offset the impact of inflation, which peaked at 8.1% las...