Bank of Canada Can 'Tolerate 100 bps Hike From Fed'

The transcript discusses the Bank of Canada's stance on interest rates, suggesting it can tolerate a 100 basis point change from the Fed without action. If the Bank of Canada moves, it is likely to cut rates to weaken the Canadian dollar. The transcript also highlights the potential market reactions to currency fluctuations and the implications for monetary policy.

What is the Bank of Canada's likely response if the Federal Reserve changes its rates by 100 basis points?

• Increase rates

• Do nothing

• Increase inflation

• Cut rates

What is the primary agenda of the Bank of Canada according to the transcript?

• Stabilize the economy

• Increase interest rates

• Weaken the Canadian dollar

• Strengthen the Canadian dollar

What might prompt the Bank of Canada to consider a rate cut?

• A decrease in the Canadian dollar to 70 cents

• A quick rise of the Canadian dollar to 80-82 cents

• A decrease in inflation rates

• A stable Canadian dollar at 75 cents

What recent fluctuation in the Canadian dollar is mentioned in the transcript?

• A stable rate at 78 cents

• A fluctuation around 80 cents

• A drop to 70 cents

• A rise to 85 cents

What might lead to speculation about a potential rate cut by the Bank of Canada?

• A decrease in the Canadian dollar by 5 cents

• A decrease in interest rates by the Federal Reserve

• An increase in the Canadian dollar by 2-3 cents

• A stable Canadian dollar at 80 cents