Bank of Canada Sends Loonie Lower on Stimulus Talk

The video discusses the Bank of Canada's decision to keep rates unchanged, despite initial market reactions to removed inflation risk comments. Governor Stephen Poloz highlighted discussions on further stimulus, including potential rate cuts, to boost economic capacity by mid-2018. The impact of new mortgage rules on the housing market was also addressed, noting they might curb home resales but won't prevent further rate cuts. Additionally, the Trudeau government's fiscal stimulus is expected to boost GDP by 1% by early 2018.

What was the initial market reaction to the Bank of Canada's decision to keep rates unchanged?

• The Canadian dollar rose initially.

• There was no reaction in the market.

• The Canadian dollar fell sharply.

• The stock market crashed.

What was the Bank of Canada's projected timeline for the economy to return to full capacity?

• End of 2018

• Early 2019

• Mid 2018

• End of 2017

What was one of the main goals of the new mortgage rules introduced in October?

• To lower interest rates

• To curb home resales

• To boost the housing market

• To increase home resales

How did Stephen Poloz view the impact of the new housing measures on future rate cuts?

• They prevent any future rate cuts.

• They are a barrier to rate cuts.

• They do not prevent further rate cuts.

• They make rate cuts unnecessary.

What is the expected impact of the Trudeau government's fiscal stimulus on GDP by early 2018?

• A 1% boost

• No impact

• A 0.5% boost

• A 2% boost