BoC: Ready to cut rates further and to deploy other market tools
|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.
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.