Bank of Canada announced the latest monetary policy decision today at 3:00 pm GMT. Canadian central bankers decided to leave the benchmark overnight rate unchanged at 0.25%. While such an outcome was expected, there were some rumours that BoC may decide to hike rates amid solid economic data and accelerating inflation. The Bank also said that slack within the economy has been essentially absorbed now and that Omicron weighs on the economy but not too severely. BoC Governing Council expects interest rates to start increasing soon. The Canadian dollar dropped following the decision with USDCAD jumping from 1.2570 to 1.2640. However, part of the gains was erased later on and now the pair is trading in the 1.2610 area where the 38.2% retracement of recent upward impulse and upper limit of local market geometry can be found.
Source: xStation5
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