On Thursday (Oct 27), / choppy downside, temporarily traded at 1.3556, up 0.01%.
() Announced an interest rate hike of 50 basis points on 26th, raising the benchmark to 3.75%.
This is the sixth time this year that the Bank of Canada has raised interest rates.
The Bank of Canada also announced that it would continue to reduce the size of its balance sheet in line with its policy of raising interest rates to further ease inflationary pressures.
Update: The Bank of Canada said Canadian inflation has eased over the past three months, but price pressures have not eased, core inflation measures and inflation expectations remain elevated and the benchmark interest rate still needs to rise further.
The governor of the Bank of Canada, Steve McCallum, says that while the time to exit tightening is closer, monetary tightening is not over yet.
The Bank of Canada predicts that rising interest rates will continue to weigh on economic growth, slowing from 3.25 percent this year to 1 percent next year and 2 percent in 2024.
Usd/CAD Technical analysis: USD/CAD shows range structure in the 1.3545-1.3582 region in Asia.
The major is expected to remain flat until key US data are released.
