BoC Holds at 2.25%, Removes Hike Language: CAD Could Remain Stuck
The Bank of Canada kept its key interest rate at 2.25% and dropped language suggesting further tightening, leading analysts to expect the Canadian Dollar to remain range-bound against the US Dollar.
USDCAD
The Bank of Canada (BoC) left its benchmark interest rate unchanged at 2.25%, as widely expected. In a notable shift, the central bank removed previously hawkish language about future rate hikes from its statement.
The decision comes after a period of volatile trading for the Canadian Dollar, which has now entered a consolidation phase against the US Dollar. The removal of hike language suggests the BoC is adopting a more cautious stance, potentially capping upside for CAD in the near term.
Source: FXStreet Forex News