Breaking: Bank of Canada leaves policy rate unchanged at 4.5% in April as expected


Share:

The Bank of Canada (BoC) announced on Wednesday that it left the benchmark interest rate unchanged at 4.5% following the April policy meeting. This decision came in line with the market expectation. BoC Governor Tiff Macklem will be delivering his comments on the policy outlook and respond to questions at a press conference starting at 1500 GMT.

In its policy statement, the BOC said that the Governing Council will continue to assess whether monetary policy is sufficiently restrictive and added that they remain prepared to raise rates if needed.

Market reaction

With the initial reaction, USD/CAD edged lower and was last seen losing 0.1% on the day at 1.3450.

Key takeaways from the policy statement

"Getting inflation down to 2% could be hard because inflation expectations are coming down slowly, service price inflation and wage growth remain elevated."

"In Canada, demand is still exceeding supply and labor market remains tight; wage growth still elevated relative to productivity growth."

"Inflation in many countries is easing in face of lower energy prices, normalising supply chains and tighter monetary policy."

"BoC expects inflation to fall quickly to around 3% in mid-2023 and then decline more gradually to 2% target by end-2024."

"Will continue the policy of quantitative tightening."

"As more households renew mortgages at higher rates and restrictive monetary policy starts to work it way through economy, 2023 consumption is expected to moderate."

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stabilizes near 1.0500, looks to post weekly losses

EUR/USD stabilizes near 1.0500, looks to post weekly losses

EUR/USD extended its daily decline toward 1.0500 in the second half of the American session, pressured by the souring market mood. Despite the bullish action seen earlier in the week, the pair remains on track to register weekly losses.

EUR/USD News

GBP/USD falls below 1.2150 as USD rebounds

GBP/USD falls below 1.2150 as USD rebounds

Following an earlier recovery attempt, GBP/USD turned south and declined below 1.2100 in the second half of the day on Friday. The negative shift seen in risk mood amid rising geopolitical tensions helps the US Dollar outperform its rivals and hurts the pair.

GBP/USD News

Gold advances to fresh multi-week highs above $1,920

Gold advances to fresh multi-week highs above $1,920

Gold extended its daily rally and climbed above $1,920 for the first time in over two weeks on Friday. Escalating geopolitical tensions ahead of the weekend weigh on T-bond yields and provide a boost to XAU/USD, which remains on track to gain nearly 5% this week.

Gold News

Bitcoin could be an alternative to US-listed companies but not in the short term

Bitcoin could be an alternative to US-listed companies but not in the short term

Bitcoin has dipped below $27,000, adding to the subdued cryptocurrency market sentiment. While short-term price concerns persist, analysts predict a rebound based on historical figures.

Read more

Nvidia Stock Forecast: NVDA slips as Biden administration attempts to close AI chip loophole

Nvidia Stock Forecast: NVDA slips as Biden administration attempts to close AI chip loophole

Nvida's stock price opened marginally lower on Friday after Reuters reported that the Biden administration is attempting to close a loophole that allowed Chinese companies access to state-of-the-art computer chips used for AI.

Read more

Forex MAJORS

Cryptocurrencies

Signatures