BREAKING: CAD strengthens as BoC rises rates more than expected

The Bank of Canada unexpectedly raised its benchmark interest rate by 100bps to 2.50 % while the markets expected 75bps increase. "Governing Council continues to judge that interest rates will need to rise further, and the pace of increases will be guided by the Bank’s ongoing assessment of the economy and inflation"

Investors will focus now on BoC Governor comments at the press conference regarding the economic outlook, inflation and fiscal policy.

USDCAD broke below 1.3000 after BoC decision . Source:xStation5

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