Finance Minister Bill Morneau said investors have reason to remain optimistic about Canada’s economy, as falling commodity prices fuel turmoil in the nation’s financial markets.
“Outside investors should be confident about Canada,” Morneau said Thursday when asked if the weaker dollar reflected doubts about the economy’s strength. “We live in a fantastic country with abundant natural resources of course, but also a highly educated workforce, and we have the room to make some significant investments to stimulate our economy and to create a more productive Canada over the long term.”
Canada’s dollar fell below 70 U.S. cents for the first time since 2003 this week as crude oil prices slid to $30 a barrel. Morneau told reporters at a farm in Dugald, Manitoba that he is “paying close attention” to those declines.
The collapse in oil prices is also expected to lead the Bank of Canada to cut its policy interest rate to a record low 0.25 percent next week, according to 14 of 27 economists in a Bloomberg News survey.