The Bank of Canada left rates unchanged (at 25bps) and left its bond-buying bonanza unchanged at C$5 billion per week – both as expected – and reiterated its forward guidance (as expected), and the Loonie managed to extend its modest gains from a recent drop to three-week lows…
The statement was exactly as expected – QE will continue until recovery well under way… BoC expects recuperation to be slow and choppy… monetary policy support required through the recuperation phase.
Pledging to keep the policy rate unchanged is “a pretty powerful commitment that they’re likely to reiterate,” Josh Nye, economist at Royal Bank of Canada, said by phone.
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