Investing.com – The Bank of Canada hiked its benchmark interest rate on Tuesday, making Canada the first Group of Seven nation to raise rates since the outbreak of the global financial crisis.
In a widely expected decision, the central bank hiked its key overnight rate from 0.25% to 0.5%.
In a statement, the bank said: "The global economic recovery is proceeding but is increasingly uneven across countries, with strong momentum in emerging market economies, some consolidation of the recovery in the United States, Japan and other industrialized economies, and the possibility of renewed weakness in Europe.
"The required rebalancing of global growth has not yet materialized."
Following the decision, the Canadian dollar was down against its U.S. counterpart, with USD/CAD gaining 0.81% to reach 1.053.
In a widely expected decision, the central bank hiked its key overnight rate from 0.25% to 0.5%.
In a statement, the bank said: "The global economic recovery is proceeding but is increasingly uneven across countries, with strong momentum in emerging market economies, some consolidation of the recovery in the United States, Japan and other industrialized economies, and the possibility of renewed weakness in Europe.
"The required rebalancing of global growth has not yet materialized."
Following the decision, the Canadian dollar was down against its U.S. counterpart, with USD/CAD gaining 0.81% to reach 1.053.