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Canada's Morneau says currency to face further pressure

Published 2015-12-14, 01:34 p/m
Canada's Morneau says currency to face further pressure

TORONTO, Dec 14 (Reuters) - Canada's weakening currency will
probably face further pressure from persistently low commodity
prices that also complicate the country's fiscal situation, the
nation's finance minister said on Monday.
"Commodity prices are softening, affecting our terms of
trade and making important inputs - so vital for our
manufacturing sector - more expensive," Bill Morneau said in his
first public speech since being named to head the finance
portfolio after the Liberal government's election victory in
October.
Morneau said he was encouraged by a recent uptick in the
U.S. economy, but China and Europe were causes for concern.
"Going forward, it is very likely that global economic
conditions will remain unfavorable and that subdued commodity
prices will persist," he said. "This of course has important
implications for the currency and our fiscal situation."
The Liberals campaigned on a platform to run budget deficits
of up to C$10 billion ($7.3 billion) a year in order to spend on
infrastructure to boost growth after the economy fell into a
modest recession in the first half of the year.
($1 = 1.3744 Canadian dollars)

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