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January 9, 2017

Business Outlook Survey - Winter 2016-17

The results of the winter Business Outlook Survey indicate that business prospects have improved following two years of overall modest activity. The responses reflect building domestic demand, a supportive export outlook and an expected recovery in energy-related activity.

Monetary policy, interest rates and the Canadian dollar

Changes in domestic interest rates affect the value of the Canadian dollar less than changes in the risk premium do. These variations often occur when a broad shift in risk sentiment occurs in global markets. Ultimately, the value of the currency reflects long-term, slow-moving features of the economies.
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