The Bank of Canada raised its policy rate Wednesday to +0.75% from 0.50%, its first increase in seven years, on an improving economic outlook that’s soaking up unused labor and production capacity at a "significant" pace.
USD/CAD down -0.6% to C$1.2834
Comments:
- BOC: Recent Data Have Bolstered Confidence in Outlook
- BOC: Canadian Economy "Has Been Robust"
- BOC: Outlook "Warrants Withdrawal of Some" Monetary Stimulus
- BOC: Future Rate Decisions to Be Guided By Data
- BOC: Mindful of Trade-Policy Uncertainty, Financial Stability
- BOC: "Significant Amount" of Economic Slack Has Been Absorbed
- BOC: Output Gap to Close By End of 2017
- BOC: Upgrades 2017 Growth to 2.8%, 2018 Growth to 2%
- BOC: Forecasts 3% Annualized Growth in 2Q, 2% in 3Q
- BOC: Growth Becoming More Sustainable; Broadening Across Regions, Sectors
- BOC: Exports Should Make "Increasing Contribution" to Growth
- BOC: Softness in CPI Due to Temporary Factors
- BOC: Expects Inflation to Return "Close" to 2% Target By Mid-2018
- BOC: Appropriate To Raise Rates Given Lag Between Monetary Policy, Future CPI
