Bank of Canada decision highlights, March 9, 2016

  • CAD appreciation due to oil, shifting policy expectations
  • CAD, oil averaging close to levels assumed in January MPR
  • Global economy is progressing largely as the Bank anticipated in its January
  • Financial market risks appear to be abating
  • US expansion appears to be broadly on track
  • Near-term outlook for the economy remains broadly the same as in January
  • Non-energy exports are gathering momentum
  • Inflation in Canada is evolving broadly as anticipated
  • The risks to the profile for inflation are roughly balanced

USD/CAD was trading at 1.3408 before the announcement. The BOC mentioned the currency but declined to take the opportunity to jawbone.

USD/CAD fell to a session low of 1.3355 after the announcement. The upbeat tone is less dovish but that was largely expected.