The Bank of Canada is the latest Central Bank to deliver a shock; cutting its main policy rate to 0.75% from 1.0% in a move which none of the 22 analysts surveyed had anticipated. Saying that the collapse in oil prices will slow inflation and weigh on the economy, BoC Governor Poloz said the bank “has room to manoeuvre should its forecast prove to be either too pessimistic or too optimistic”. USD/CAD rose to a 6 year high of 1.2394.
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