The Bank of Canada as expected, it kept the benchmark interest rate at 0.25%. In the statement, he announced that he will recalibrate the purchase program towards longer-term bonds. Purchases will drop from 5 billion a week to 4 billion.
The central bank continues to see a wide gap in GDP growth and estimates that inflation will be below 2% until 2022. They see that the economy is in a transition period to a more moderate recovery.
The loonie the market fell slightly after the decision. The statement and others did not overshadow the key issue of the day in the currency market, which is the appreciation of the dollar in the face of a fall in the stock markets.
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Credits: Forex Street
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