Breaking: Bank of Canada leaves policy rate unchanged at 4.5% as expected
|The Bank of Canada (BoC) announced on Wednesday that it left the benchmark interest rate unchanged at 4.5% following the March policy meeting. This decision came in line with the market expectation.
In its policy statement, the BoC reiterated that it expects to hold the key rate at its current level, conditional on the economy developing broadly in line with its forecasts.
Market reaction
USD/CAD edges slightly higher as investors assess the BoC's policy announcements. As of writing, the pair was trading at its highest level since early November, rising 0.2% on the day at 1.3778.
Key takeaways from the policy statement
"Latest economic data remain in line with bank's expectation that overall inflation will come down to around 3% in the middle of this year."
"Prepared to increase policy rate further if needed to return inflation to 2% target."
"Labor market remains very tight, employment growth has been surprisingly strong."
"Price increases for food and shelter remain high, causing continued hardship for Canadians."
"Restrictive monetary policy continues to weigh on household spending."
"Weak economic growth over the next couple of quarters means pressures in product and labor markets are expected to ease."
"Strength of China's recovery and impact of Russia's war in Ukraine remain key sources of upside risk to forecasts for commodity prices."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.