Bank of Canada maintains key rate at 0.25%; cautions on rise of C$

The Bank of Canada left rates steady, the key rate at 0.25%. The recent burgeoning strength of the canadian dollar is obviously a growing concern for the BOC, who caution on the “unprecedentedly rapid rise” of the currency.

The BOC notes recent significant improvements in financial conditions and comomodity prices and a modest recovery in consumer and business confidence, but worries that all of that could be lost if the C$ sustains current levels.

The bank made no mention of quantitative easing.

USD/CAD trades at 1.1070, off it’s 1.1021 session low, but lower than where it was when we started out in Europe, namely around 1.1120.