CAD edges briefly higher after the BOC’s Monetary Policy Report, with Canada’s inflation-targeting central bank pointing to a firming inflation profile for 2012. The profile may have dented any lingering expectations in the market that the bank is readying for a cut of its 1.00% overnight target rate. A rate hike for Canada nonetheless remains a ways off, with the bank’s quarterly forecast predicting weaker GDP growth for the year, as the crisis in Europe weighs on global growth, drags on overall demand for exports. The bank sees private domestic demand expected to account for almost all the economic growth through 2013. US dollar is at C$1.0138, from C$1.0145 before the release.
EasyForexNews Research Team