The Canadian Dollar fell strongly against the American counterpart on the Bank of Canada’s interest rate decision on Wednesday. The USD/CAD gained 106 base points or 0.84% to the 1.2763 mark and continued gradual increase to the 1.2800 area.
The Bank of Canada announced that it kept its key interest rates unchanged at 1.00%, as expectedThe Bank was set to keep cautious stance as less stimulus will be needed over the time, as it considers future steps given the uncertainties and risks the economy faces. Moreover, the BoC emphasized that the 2% inflation growth is likely to be seen later in 2018 than previously anticipated, as the stronger currency could slow the export growth.
