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Bank of Canada Holds Overnight Rate

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This morning the Canadian Central bank announced that it is keeping its benchmark overnight rate unchanged at 0.25%. The BoC has released a positive view on global recovery, but conditional to inflation.

The most telling line in the statement was the following:

[mserve id=”Central_Bank_BOC.jpg” align=”left” width=”400″ caption=”Bank of Canada” alt=”Central Bank of Canada BOC” title=”Bank of Canada”]

Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target. In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility, consistent with the framework outlined in the April MPR.

The next scheduled rate announcement will be held on 19 January 2010. For more Canadian Economic Indicators visit FXEconostats

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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