Global Oil Prices Fluctuations - Assignment Example

Canada is also going through a phase of major economic growth. From better business confidence to improved exports to more foreign demand to a stronger employment sector, Canada is enjoying a healthy phase of growth. However, the overall outlook is rather ambiguous and it is not yet fully known how the drop in oil prices is bound to affect Canada in future. The press release also reveals that an uncertain outlook is the result of lower oil prices. To handle the negative impacts of lower oil prices, the Bank expects to make the Canadian economy stronger than ever before. This will be accomplished by increasing real GDP growth. The Bank will also adopt such a monetary policy which will help in minimizing risks caused by the oil price shock and returning the Canadian economy to full capacity. The current target for the overnight rate is 0.75% as per the press release for 21 January 2015. The bank rate of the Bank of Canada is 1 per cent and the deposit rate is 1/2 per cent.