empty
 
 

2018.04.1823:50:00UTC+00Canadian Dollar Drops after Poloz Reiterates Cautious Outlook

The Canadian dollar extended its drop versus the greenback on Wednesday after the country's central bank governor reiterated the need for a cautious approach to interest-rate hikes despite the improving outlook for the economy.

The Bank of Canada kept its benchmark interest rates steady at 1.25 percent as widely expected earlier this morning but signalled in its accompanying statement that more rate hikes are possible amid an acceleration in inflation and expectations that the economy will bounce back in the second quarter.

However, Stephen Poloz, the bank's governor, beat back on expectations of a quicker pace of tightening during the subsequent press conference, saying the BoC “can't be definitive about when or at what pace” these rises could take place.

The Canadian central bank has already hiked interest rates three times since last summer to a nine-year high of 1.25 percent. However, the markets have started reeling back expectations for further BoC tightening after the country recorded a sharper-than-expected slowdown during the fourth quarter, alongside a spate of mixed economic readings.

The Canadian dollar, which was down 0.2 percent ahead of the decision, fell as much as 0.9 percent to C$1.2660 during the press conference. It is currently trading down 0.7 percent at C$1.2638.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback