BREAKING: Bank of Canada cuts interest rates by 50 bps 🎯

02:45 PM BST, Canada - BoC Interest Rate Decision for December:

• actual 3.75%; forecast 3.75%; previous 4.25%;

The Bank of Canada has lowered its policy interest rate by 50 basis points to 3.75%, marking the fourth consecutive cut since June. Inflation has dropped from 2.7% in June to 1.6% in September, reaching the 2% target, and is expected to remain close to this level. The bank aims to maintain low, stable inflation while supporting economic growth through further potential rate cuts. Risks to the inflation outlook include weak household spending and business investment, but overall, the risks are balanced as inflation stabilizes near the target.

Although the rate decision was in line with expectations, we still experienced increased volatility on USDCAD. However, the currency pair recovered after a while to pre-publication levels