Analysts at NBF explained that the central bank’s decision to raise rates was largely expected by markets.
"The economy is at capacity, inflation pressures are on the rise, and real rates remain negative, which all warrant further tightening of monetary policy. In that regard, an October rate hike is possible if the BoC’s forecasts for growth pan out. That said, the central bank made clear it is data dependent and hence nothing is cast in stone."
"Note that the BoC cautioned about rising trade protectionism which have arguably raised downside risks to the economy. The U.S., which last month imposed tariffs on imports of steel and aluminum, is now threatening additional trade barriers. Tariffs on autos for example, which are now being considered by the Trump administration ─ public hearings held by the U.S. Department of Commerce take place next week ─, would have unambiguously devastating economic impacts if enacted."
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 securities. 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 Forex 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.