The Bank of Canada left its benchmark interest rate unchanged at the effective lower bound of 0.25 %, as widely expected. The Committee leaves QE program at $5B per week, as expected. Central Bank noted that the economy is recovering amid the easing of coronavirus restrictions and supported by government programs to replace incomes and subsidize wage. The Committee added that economic activity is expected a faster-than-expected bounce back in activity in the third quarter of the year. BOC continues to expect the recuperation phase to be slow and choppy as the economy copes with ongoing uncertainty and structural challenges. BOC "will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved". A press conference of Governor Macklem will not take place today.
USDCAD - initially currency pair fell after today's BoC interest rate decision, however buyers manage to quickly regain control and price is currently testing the 1.3210 resistance level. Source: xStation5
