The BoC maintained its policy rate while removing references to rate-cut risks and consecutive hikes, signaling a shift in tone.
The Bank of Canada left its benchmark interest rate unchanged at 2.25% in its latest policy decision. The central bank softened its guidance by dropping language around potential rate cuts and further hikes, a move markets viewed as mildly dovish.
Prior to the decision, markets had already priced in limited near-term policy shifts. The BoC’s statement did not include explicit forward guidance, contrasting with earlier communications that hinted at possible tightening or easing.
The Canadian dollar showed limited reaction, as traders awaited further clarity on the bank’s policy trajectory.