Loonie Jumps After Bank Of Canada Holds Rates, Sees Output Gap Closing Sooner

The Bank of Canada kept its benchmark overnight interest rate on hold at 0.5%, as expected, noting that the “current stance of monetary policy is still appropriate” and adding that the ‘global economic growth is strengthening and becoming more broadly-based’.
While observing that the global economic situation had brightened since January and acknowledged “the strength of recent data”, it cautioned that ‘there is still considerable uncertainty about the outlook’. It also said that ‘material slack remains’ in the Canadian labor market.
In kneejerk reaction the loonie jumped, with the USDCAD sliding below 1.327 before recouping some gains.

This post was published at Zero Hedge on Apr 12, 2017.