The Bank of Canada Canada meeting minutes:
- Bank of Canada was ‘particularly concerned about persistent inflation and lowering rates ‘prematurely’ in Jan policy-setting meetings
- Governing council discussed risk that monetary policy could have greater than expected impact on consumer spending, requiring lower rates earlier and more quickly.
- Governing council saw risk of inflation being more persistent than expected, requiring rate to stay restrictive for longer.
- Governing council discussed risk that housing market would rebound more than expected and keep inflation above target even as other price pressures wane.
- Governing council saw mixed picture of underlying inflation, the need for more time for past rate hikes to sink in.
- Governing council recognized ‘it was difficult to foresee when it would be appropriate to begin cutting rates’.
- Governing council expect wage growth to moderate gradually.
- Governing council agreed most likely explanation for rise in overnight repo interest rate above policy rate was increase in demand for govt bonds.
- Governing council agreed need for overnight repo operations was operational issue related to implementing monetary policy.
The USDCAD remains below its 200 day MA at 1.34785 (see video HERE), but also above the 100 hour moving average and 100 bar moving out on the four hour chart at 1.3468 and 1.3463 respectively.
Here is the USDCAD video from earlier today outlining the technical levels in play and why….
This article was written by Greg Michalowski at www.forexlive.com.