- Bank of Canada raises interest rate to the highest level since April 2008.
- Rise of 75 basis points in line with expectations for expectations.
- USD/CAD pulls back slightly after the decision.
The Bank of Canada raised the interest rate by 75 basis points to 3.25%, in line with market expectations. At the July meeting it had risen by 100 points. In this way, the reference rate reached the highest level since 2008.
The monetary adjustment is due to high inflation. BoC officials said interest rates need to rise further. In the central bank they see the economy as projected in July, including the slowdown in the real estate market.
There will be no press conference. The next interest rate decision will be on October 26 and will include the Monetary Policy Report.
The USD/CAD pulled back on the news and fell from daily highs above 1.3200 to 1.3160, although after a few minutes it was approaching 1.3200 again.
Source: Fx Street