Bank of Canada leaves policy rate unchanged at 0.25% as expected
In a widely expected decision, the Bank of Canada (BoC) announced on Wednesday that it left its key rate unchanged at 0.25% following its December policy meeting.
Additional takeaways from policy statement as summarized by Reuters
"Maintaining extraordinary forward guidance, reinforced and supplemented by quantitative easing program, which continues at its current pace of at least C$4 billion per week."
"The rebound in the global and Canadian economies has unfolded largely as the BoC had anticipated in its October MPR."
"News on the development of effective vaccines is providing reassurance that the pandemic will end."
"Economic momentum heading into the fourth quarter appears to be stronger than was expected in October."
"Rates will not go up until economic slack is absorbed, this will not happen until into 2023."
Market reaction
The USD/CAD pair's reaction was largely muted and was last seen losing 0.3% on the day at 1.2776.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
