The Bank of Canada's Key Rate Decision yesterday did not create the same surprise as the last meeting did. Governor Stephen Poloz kept the key rate at 0.75%, and praised his actions by stating that financial conditions in the country were now notably more accommodative following the recent rate cut. The BoC believes that the low crude oil prices effect will be felt in the first quarter of the year. Based on what the press release says, we should not expect any more rate cuts in the coming months, and the impact of this decision was felt on financial markets, as Canadian bond yields jumped by more than 10 basis points and the loonie rose by close to 1% during Wednesday's session.
Early this morning, both the European Central Bank and the Bank of England released their key rate decisions, and both elected to keep their policies unchanged, leaving their rates at historic lows while maintaining their bond purchase programs. In economic news today, we will have Initial Jobless Claims and Factory Orders in the U.S. Have a good day!
Philippe Shebib
Range of the day : 1.2390 - 1.2480