Investing.com - The Bank of Canada left its benchmark interest rate unchanged for the 19th consecutive month in January and dampened expectations for a rate hike in the coming months.
In a statement released earlier, the central bank said it was leaving its overnight cash rate unchanged at 1.00%, in line with expectations.
The central bank said in an accompanying rate statement that, “While some modest withdrawal of monetary policy stimulus will likely be required over time, the more muted inflation outlook and the beginnings of a more constructive evolution of imbalances in the household sector suggest that the timing of any such withdrawal is less imminent than previously anticipated.”
Following the release of the data, the Canadian dollar extended losses against its U.S. counterpart, with USD/CAD climbing 0.43% to trade at 0.9963.
In a statement released earlier, the central bank said it was leaving its overnight cash rate unchanged at 1.00%, in line with expectations.
The central bank said in an accompanying rate statement that, “While some modest withdrawal of monetary policy stimulus will likely be required over time, the more muted inflation outlook and the beginnings of a more constructive evolution of imbalances in the household sector suggest that the timing of any such withdrawal is less imminent than previously anticipated.”
Following the release of the data, the Canadian dollar extended losses against its U.S. counterpart, with USD/CAD climbing 0.43% to trade at 0.9963.