NBC Daily Forex : October 24, 2013
The National Bank of Canada | Oct 27, 2013 03:04AM ET
As expected, the Bank of Canada decided to hold its key rate steady at 1%. The rather accommodating tone of its press release confirms its intention to maintain its current monetary policy for some time. The CAD lost 60 points against the USD yesterday, and we believe that the loonie will continue to drop today.
In short, the Bank revised its 2013 growth forecast downwards to 1.6% vs. 1.8%, as mentioned in its July announcement. It also revised its 2014 forecast downwards from 2.7% to 2.3%. Though inflation is below target, eliminating the possibility of a key rate increase in the short-term, Canadian household debt levels remain a significant concern for the BoC, despite the efforts deployed in the real estate sector. The BoC may come up with other initiatives to dampen the enthusiasm of Canadian consumers.
On the North American economic calendar, U.S. Initial Jobless Claims will be released today. Wishing you a great day! Rana Karim
Range of the day: 1.0365-1.0445
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