BoC leaves rates unchanged, drops hawkish remarks
The Bank of Canada left rates unchanged as expected on Tuesday and softened its stance on monetary policy.
The central bank said a weak global economy has forced it to cut growth and inflation projections and consequently withdrew any mention of the need to reduce stimulus. They maintained their overnight interest rate at 1% as expected.
USD/CAD surged higher after the BoC interest rate decision, to 1.0076 from 1.0027. It was trading below parity at 0.9991 just until a couple of hours before the central bank’s announcement.
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