On Friday (Oct 28), / fell back from high, temporarily traded at 1.3539, down 0.23%.
The bank said it continued to operate under excess demand and the Labour market remained tight.
Demand for goods and services continues to outstrip the economy’s capacity to supply them, putting upward pressure on domestic inflation.
“While the country’s inflation rate has eased over the past three months, price pressures have not eased, core inflation measures and inflation expectations remain elevated, and benchmarks still need to rise further.”
Canada’s governor, Steve McCallum, said that while the exit from tightening was closer, monetary tightening was not yet over.
The Bank of Canada expects growth to slow from 3.25 per cent this year to 1 per cent next year and 2 per cent in 2024 as the impact of higher interest rates spreads through the economy.
Usd/CAD eased off a five-week low from the previous day’s rally.
In doing so, the Canadian dollar pair ignored recent weakness in crude oil in WTI, Canada’s main export item, as a way to consolidate gains from the previous day, as hawkish bets have fallen recently.
