Prior rate was 3.75% after 50 bps on October 23Economists widely expected a 50 basis point rate cutThe market was pricing in a 90% chance of a rate cutPrior statement said ” If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further”
USD/CAD was trading at 1.4182 ahead of the report compared to the four-year low of 1.4194. The next Bank of Canada rate decision is on Jan 29 and market pricing suggested a 50/50 chance of a cut prior to today’s decision.
This article was written by Adam Button at www.forexlive.com.
