BOC raised interest rates by 25 basis points this week (June 5)

In the Asian session on Monday (June 5), USD/CAD fell to 1.3429, a drop of 0.01%. Economists expect the Bank of Canada to raise interest rates by 25 basis points this week and maintain guidance that leaves the door open to further tightening.

The latest from the Bank of Canada:

“The Governance Committee continues to assess whether monetary policy is sufficiently restrictive to ease price pressures and is prepared to raise policy rates further if necessary to bring inflation back to the 2% target.” If the Bank of Canada does not raise interest rates this week, the hawkish guidance is expected to The impact of the front end of the Canadian interest rate curve could equate to a rate hike.