Canadian economy faces downturn due to falling oil prices

BOC kept its benchmark interest rate unchanged in January meeting. Moreover, Canadian dollar hit 13 year low against US dollar. Falling oil prices are also the major driver behind the commodity-based loonie's losses.There are different views prevailing for the BoC's next monetary policy move. Many economists expect the central bank would cut rates further to fight against deep oil price shock at the start of 2016.  

According to Reuters latest survey, five of eleven Canada's primary dealers expect a rate cut, with four projecting the central bank will move in 2016 and one expecting it to hold off until 2017. In Canada, traders anticipate the release of Canada's November GDP, scheduled for Friday, with markets expecting to see 0.3% growth.