‘Improving US economy’ to negate side effects of lower oil prices – BOC’s Lane

FXStreet (Mumbai) - Bank of Canada’s (BOC) Deputy Governor Timothy Lane painted a bleak picture of drastically lower oil prices, its economic side effects, and overall diminishing global growth. But he added, the US recovery will drive pickup in Canadian exports.

The deputy governor stressed that "the sharp drop in oil prices will weigh" on growth, but some of the negative effects will be offset by an "improving US economy," which will help "boost exports.”

However, Lane noted, if lower crude prices persist, it could make some "Canadian production uneconomical."

He added, global growth has been disappointing, "but is picking up," "central bank policy rates are at historic lows."