The BoC raised its benchmark rate yesterday, but remained concerned over NAFTA and reiterated its caution in considering future adjustments in policy. In the Eurozone, ECB officials expressed concerns over the euro’s latest appreciation, with the currency underperforming all its major counterparts.
BoC Raises Interest Rates; Concerned Over NAFTA
Yesterday, the main event was the BoC’s rate decision. As was widely anticipated, the Bank raised interest rates by 25bps, to 1.25% from 1.00%. However, in the statement accompanying the decision, policymakers noted that the uncertainty surrounding the future of NAFTA is clouding the economic outlook. Also, they kept the part saying they will remain cautious in considering future policy adjustments, guided by incoming data.
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