The Bank of Canada opted to leave interest rates unchanged as was widely expected by consensus estimates. In its monetary policy statement, the BoC noted that the Canadian economy rebounded as projected and that it was evidence of growth coming from the non-resource sectors. The BoC raised the third quarter growth forecast to annualized expansion of 2.50% compared to earlier expectations of 1.50% while lowering fourth quarter projections to 1.50% from 2.50%. The Central Bank also cut its 2016 guidance for GDP growth from 2.30% to 2.00%. On inflation, the BoC expects price growth to be around 1.20% in third quarter on the headline and 2.10% for the core figure. The Canadian dollar initially strengthened on the news only to give back its gains as USDCAD closed with a daily gain of 1.23% for the day at 1.3130.
Euro to Take Center Stage
Daily Analysis - 22/10/2015