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Don’t Assume Canada Will Rally With U.S., Poloz Warns Investors

  • Central bank hammers home divergence theme, loonie tumbles
  • Rate cuts remain a possibility even with Fed tightening
Bloomberg business news

Downside Risks to Canada as Trump Policies Become Clearer

Bank of Canada Governor Stephen Poloz has a message for those betting Canada’s economy will ride shotgun on the U.S. recovery: think again.

Canada’s central bank chief spelled out Wednesday how his economy is still diverging from the U.S. two years after an oil shock took hold. His statements cast doubt on the recent rally in the country’s dollar and bond yields that, in the past, have accompanied similar rallies in the U.S. Here’s why: