The Bank of Canada left the interest rate unchanged at 1% as widely expected. BOC governor Stephen Poloz has not made any dramatic changes since taking the helm and entering the shoes of Mark Carney.
USD/CAD traded lower towards the publication, falling as low as 1.0478 before recapturing the 1.05 line before the event. The pair is now sliding below 1.05 once again.
The BOC doesn’t see inflation as a danger. Here is a segment from the statement:
Inflation in Canada remains subdued. With inflation expectations well-anchored, both core and total CPI inflation are expected to return slowly to 2 per cent as the output gap closes.
Earlier, Canada released a disappointing trade balance deficit: 0.9 billion instead of 0.3 expected. Other recent economic figures from Canada disappointed and caused worries.
Despite the rise in oil prices due to tensions around Syria, the Canadian dollar remains on the back foot. The next big level is 1.0660, which worked as resistance several times. On the downside, 1.0446 is important support.
For more, see the USD to CAD forecast.
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