Investing.com - Financial Markets Worldwide

Bank of Canada Maintains Rate Target At 1 Percent - For 32nd. Time

ByThe National Bank of Canada
Published 05/30/2013, 03:09 AM
Updated 05/14/2017, 06:45 AM

For the 32nd time in a row, the Bank of Canada's Governor kept the Key Interest Rate unchanged at 1.0%. It would have been surprising for Mark Carney to dramatically shift his policy before passing the torch to Stephen Poloz. However, there are a few noteworthy points. First, the Bank’s hawkish bias remains, despite the its view that an expansionary monetary policy is still required for 2013. Secondly, the Bank recognizes that the Canadian economy is not running at full capacity. Case in point: the CAD’s recent weakness. Mark Carney is therefore leaving the relative calm of the Canadian economy to deal with a much more precarious situation in the U.K.

U.S. GDP figures for the first quarter of 2013 are scheduled for release at 8:30 Thursday morning. Markets anticipate a growth of 2.5%, as was the case for the previous quarter. Based on the strength of the most recent U.S. economic data, it would seem that Uncle Sam’s engine is getting back into gear in early 2013. This could be a bad sign for the Canadian dollar. Wishing you a great day. Xavier Villemaire

Range of the day: 1.0305 - 1.0405
Economic Data

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.