Bank of Canada holds interest rate at 2.25% due to easing core inflation
The Bank of Canada kept its key interest rate at 2.25% due to easing core inflation and a weak real economy.
Market pricing now reflects only one hike by December, easing monetary-policy pressure on the Canadian Dollar.
The US Dollar’s broader moves will influence the USD/CAD direction, as the Canadian economy faces challenges including USMCA negotiations and political concerns.