Today’s Canadian Monetary Policy Report made scant mention of the precipitous fall in oil prices over the past three months, except to note that energy prices had declined in the context of global growth headwinds. The 2015 Canadian GDP outlook remained unchanged at 2.5% and the pass-through from past depreciation was still seen as adding 0.1-0.3% to core inflation, which held steady at 2.1% in September. In this context the Bank of Canada retained its neutral stance on rates and USD/CAD whipsawed through the day, ending up broadly unchanged.
Read the full report: FX Daily