Whilst the Bank of Canada kept rates on hold at 0.5% as was widely expected, there has been some volatility in the Canadian dollar which has gained in the last twenty minutes largely due to the accompanying monetary policy report (MPR).
The report was fairly balanced overall with a possible hawkish skew. The following quotes some of the most noteworthy:
- Global economic growth is strengthening and becoming more broadly based
- In Canada, economic growth has been faster than was expected in the January MPR
- Employment data have been robust, although gains in hours worked are still soft
- Growth in Canada is expected to moderate but remain above potential
The latest forecasts for GDP are shown below:
USDCAD (-0.41%) has fallen to its lowest level of the day on the release and is currently trading below the 1.3275 level identified earlier as possible support.
Governor Poloz is set to conduct a press conference at 4:15PM
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