The Canadian Dollar revelaed a 1.26% volatility against the US Dollar, following the BoC monetary policy decision. Though, the USD/CAD currency pair fell just 0.02%, remaining in the bearish trend.
The Bank of Canada implemented an interest rate hike on Wednesday, in line with expectations, as employment growth and solid inflation outweighed NAFTA uncertainties, though the Central Bank’s Chief admitted that the change was not an easy decision. The rate increase acknowledges that recent economic data was stronger that the BoC anticipated, inflation was nearing 2% goal, and the economy was operating at its full potential without output gap. The Bank also stated that trade uncertainty is likely to cut investment by 2% by the 2019 end.
