The Canadian Dollar plummeted by 0.7 per cent against its American counterpart after the Bank of Canada’s rates decision, Monetary Policy Report and accompanying comments.
As widely predicted the BoC held the benchmark rare at 1 per cent, and in the statement released alongside it the central bank asserted that although an increase in the policy rate may need to occur in the future it is unlikely to happen soon.
In its Monetary Policy Report the financial institution asserted its belief that this quarter will see inflation averaging at 0.9 per cent and remaining under 2 per cent until the third quarter of next year.
Under BoC Governor Mark Carney policy makers cut their estimate for fourth quarter growth from 2.5 per cent to 1 per cent, similarly reducing their estimate for the first quarter of this year from 2.6 per cent to 2.3.
Although foreseeing expansion of 2.7 per cent in 2014, the BoC slashed its forecast for overall economic growth in 2013, cutting October’s 2.3 per cent prediction to 2 per cent.
The Canadian Dollar began trading lower against the majority of its peers after the news was released, with declines exacerbated by the BoC’s comment that the “persistent” strength of the ‘Loonie’ was responsible for restraining exports and dragging on the nations GDP.
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro exchange rate is currently trading at 0.7532
The Canadian Dollar to Pound Sterling exchange rate is currently trading at 0.6316
The Canadian Dollar to US Dollar exchange rate is currently trading at 1.0008
The Canadian Dollar to Australian Dollar exchange rate is currently trading at 0.9500
The Canadian Dollar to New Zealand Dollar exchange rate is currently trading at 1.2151
The Canadian Dollar to Emirati Dirham exchange rate is currently trading at 3.6947
The Canadian Dollar to Swiss Franc is currently trading at 0.9304
The Canadian Dollar to Japanese Yen exchange rate is currently trading at 88.6609
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