BOC Rate Statement and Monetary Policy Report
The Bank of Canada is due to deliver its interest rate decision and monetary policy report at 05:00 p.m. MT time. The rate announcement is a crucial factor for the CAD exchange rate, so traders pay special attention to the BoC’s monetary policy announcements.
At the last meeting, the central bank’s officials decided to maintain their target for the overnight rate at 0.5%. The bank’s Governing Council underlined the slack of Canadian economy compared to the US one. Although the recent data have been persistently improving, the bank will likely prefer not to hike at the upcoming meeting pointing out at the uncertainties over Canada-US trade relationships. The absence of the rate hike and moderate comments from the BoC may put Canadian currency under pressure.