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The Bank of Canada cut interest rates by 25-basis points, leaving the bank with one more bullet in the chamber before it would have to go non-conventional. Hopefully, we will get a fiscal response instead, but I’m not holding my breath.

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The perfect storm for the loonie has arrived, say analysts, with the Bank of Canada rate cut, weak oil prices, a sluggish economy and a looming Federal election all ganging up against Canada’s currency.

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The bank sliced its 2015 real GDP growth forecast to 1.1 per cent from 1.9 per cent. For 2016, growth was trimmed as well to 2.3 per cent from 2.5 per cent (but due to weaker handoff) and for 2017 the forecast was improved to 2.6 per cent from 2 per cent, which suggests that the longer-run outlook has improved but off a lower base.

For the second quarter, the Bank of Canada is now projecting a 0.5 per cent annualized decline (after -0.6 per cent in the first quarter) compared to the previous forecast for a 1.8 per cent gain, so big haircut to second quarter. There was also another big slice to the third quarter to 1.5 per cent from 2.8 per cent, while the fourth quarter was unchanged at 2.5 per cent.