Investing.com - The Bank of Canada left its benchmark interest rate unchanged in March in a widely expected decision and repeated language from its January policy statement on Wednesday.
In its sixth meeting under the helm of Governor Stephen Poloz, the BoC said it was leaving its overnight cash rate unchanged at 1%, in line with expectations.
“With inflation expected to be well below target for some time, the downside risks to inflation remain important,” said a statement accompanying the announcement.
The BoC judged “that the balance of risks remains within the zone for which the current stance of monetary policy is appropriate. The timing and direction of the next change to the policy rate will depend on how new information influences this balance of risks.”
Following the release of the data, the Canadian dollar added to gains against its U.S. counterpart, with USD/CAD shedding 0.25% to trade at 1.1064, compared to 1.1076 ahead of the decision.