Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Canadian Dollar Gains As Central Bank Raises Economic Outlook

Economic IndicatorsApr 21, 2021 10:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – The Canadian dollar USD/CAD strengthened against the greenback after some initial hiccups in Wednesday’s trade, boosted by the country’s central bank forecasting a better economy.

Bank of Canada kept the key interest rate unchanged at 0.25%.

The Bank said it expects economy to grow 6.5% in 2021, up from its January forecast of 4%, with real GDP growth of 3.7% in 2022, down from a previous forecast of 4.8%. It now sees U.S. economic growth this year at 7%, up from 5%.

The Bank said the economy still needs “extraordinary monetary policy support” and that it is committed to holding the policy interest rate lower “until economic slack is absorbed so that the 2% inflation target is sustainably achieved."

Nonetheless, improving economic indicators are behind the bank’s decision to trim its federal government bond purchases that were aimed at reviving the economy.

Effective April 26, weekly net purchases of government of Canada bonds will be adjusted to a target of $3 billion, the central bank said.

Like what many in several markets have feared their central banks will do, it suggested rates could rise sooner than the previous forecast of sometime in 2023.

Canada's annual inflation rate doubled to 2.2% in March, in part due to a statistical difference caused by the sharp deceleration last year during the pandemic and because of rising energy prices, Statistics Canada said on Wednesday.

Over the next few months, inflation is expected to rise temporarily to around the top of the 1% to 3% inflation-control range, the central bank said.

 

Canadian Dollar Gains As Central Bank Raises Economic Outlook
 

Related Articles

U.S. wholesale inventories rise solidly in March
U.S. wholesale inventories rise solidly in March By Reuters - May 07, 2021 1

WASHINGTON (Reuters) - U.S. wholesale inventories rose sightly less than initially estimated in March as sales surged amid robust demand. The Commerce Department said on Friday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email