The Bank of Canada announced its latest monetary policy decision at 3:00 pm BST today. No surprise from BoC was offered and the main rate was left unchanged at 5.00% for the second meeting in a row. Such an outcome was expected by economists and was also priced in by money markets, which suggested less than 5% chance of a hike just before the meeting. However, statement showed that BoC is ready to increase rates further if needed. However, BoC noted that there is growing evidence that previous rate hikes have damped economic activity.
Forecasts are for CPI to average 3.5% through mid-2024 and drop to 2% in 2025. Annualized Q3 2023 GDP is seen at 0.8%, down from 1.5% forecast back in July, while Q4 growth is seen at 0.8% as well.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appCAD weakened slightly following the release with USDCAD moving higher. The pair climbed above the early-October highs and reached the highest level since late-March 2023.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
