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The Bank of Canada (BoC) stands ready to cut its policy rate further and to deploy other market tools if required to support growth and keep inflation on target, the bank reiterated in a statement published on Tuesday.

Key takeaways

“Economic consequences of coronavirus will clearly have a major negative impact on the economy. Both the size and duration of this impact are unknown.”

“Governing Council mulled waiting till April 15 to cut rates but decided to move last Friday to help create an even more powerful domestically-coordinated policy package.”

“Governing Council concluded there could be a considerable benefit to reducing interest rates immediately and therefore moved on Friday.”

USD/CAD reaction

The USD/CAD pair edged slightly higher on these remarks and was last seen trading at 1.4147, adding 0.93% on a daily basis.