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BoC held rates at 2.25%. How did CAD react?
Market reaction:
๐จ๐ฆ CAD strengthened slightly against USD
๐ USD/CAD moved lower after the decision
๐ Market reaction was muted, as the hold was widely expected
โ ๏ธ Traders focused on growth recovery, inflation risks and the press conference tone
Key points:
๐ Policy rate held at 2.25%
๐ Bank Rate held at 2.50%
๐ Deposit rate held at 2.20%
๐ BoC said Canadaโs economy is showing signs of improvement
๐ Inflation is expected to ease gradually from its recent spike
The Bank of Canada kept rates unchanged for the sixth consecutive decision. The central bank noted that growth is picking up, but also pointed to risks from global uncertainty, Middle East tensions and US trade policy. USD/CAD dipped after the decision, while other sources described the CAD reaction as muted because the hold was largely expected.
Did the BoC decision match your expectations? Did you trade the CAD reaction live, wait for the press conference or sit this one out? ๐
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