Canada Holds Key Rate Steady

The transcript discusses the impact of wildfires on Canada's GDP, noting a 1.25% decline in the second quarter. The Bank of Canada expects no policy changes as the effects are temporary. Rebuilding efforts may boost GDP in later quarters. The loonie has fluctuated against the US dollar, recently bouncing back due to the Bank of Canada's decisions.

What is the expected impact of wildfires on Canada's GDP for the second quarter?

• A 1.25% decline

• A 0.75% increase

• A 1.25% increase

• No impact

Why does the Bank of Canada not plan to change interest rates in response to the wildfires?

• The impact is expected to be temporary

• They plan to increase rates instead

• The GDP decline is too severe

• They are waiting for the Federal Reserve

How might rebuilding efforts affect Canada's GDP in the later quarters?

• They will have no effect

• They will stabilize GDP

• They will further decrease GDP

• They will boost GDP

What was the recent trend of the Canadian dollar against the US dollar before the Bank of Canada's decision?

• It was increasing

• It was stable

• It was fluctuating

• It was declining

What event caused the Canadian dollar to bounce recently?

• A change in US interest rates

• A new trade agreement

• The Bank of Canada's decision

• A rise in oil prices