Oil Prices: Bank and Adjustment Process

oil prices: The central bank forecast was released Wednesday along with its scheduled announcement on its benchmark interest rate, which it left at the rock-bottom level of 0.5 per cent, as expected."Essentially, the underlying forces that support a strengthening of growth in Canada remain the same, and the adjustment process of the economy to the lower oil prices is well underway," Carolyn Wilkins, Bank of Canada senior deputy governor, said in French after the announcement."That said, international and national factors have led us to lower our projections for growth in the ."Among its predictions, the bank for the first time released numbers on the potential impact of the U.K. referendum last month to exit the EU, also known as Brexit, according to Metro News. It said the fallout from the vote will reduce the level of global GDP by 0.2 per cent by the end of 2018 — and fall by 0.1 per cent in Canada over the same period. The effects of the disaster, which temporarily shuttered key oilsands facilities, took hold as the national economy struggled with disappointing exports numbers, feeble business investment and uncertainty around the United Kingdom vote to leave the European Union. According to the bank, the "modest" effect on Canada was largely due to the country small direct trade exposure to the U.K. It stressed that the scope of Brexit impact remained uncertain and will only be understood as the process unfolds. The fires cut oil production, led to Fort McMurray evacuation and destroyed more than 2,000 structures. The report also provided a more-detailed assessment of the effects of the huge Alberta wildfires that erupted in May. (www.immigrantscanada.com). As reported in the news.