The Bank of Canada held its key interest rate steady at +1.75% this morning as weaker global and domestic growth prospects led policy makers to express more caution about the pace of future rate increases.
The central bank said the economic outlook continues “to warrant a policy rate that is below the neutral range, which is currently estimated around 2.5% to 3.5%.”
The more “dovish” tone has the loonie under pressure, trading down -0.65% at C$1.3453. The ‘techies’ see fresh air towards C$1.3650 if the ‘loonie’ closes down above C$1.3450 on Wednesday.
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