“It’s unlikely the Bank of Canada would be able to cut rates when they have household debt as high or financial stability risk as high as it is,” Sutton said in the article.
The central bank expects the Canadian economy to return to full capacity by the end of 2015.
The iShares MSCI Canada (NYSEArca: EWC), which tracks Canadian stocks, has only gained 2.2% year-to-date. Since the fund tracks Canadian-dollar denominated stocks, investors are exposed to currency risk, and the depreciating loonie has weighed on EWC’s returns.
CurrencyShares Canadian Dollar Trust
For more information on Canada, visit our Canada category.