Bank of Canada Interest Rate Decision out today at 2pm GMT - Be careful if you are trading CAD Towards end of the year 2000, Bank of Canada (BoC) introduced a system of eight ‘fixed’ dates each year on which it announces whether or not it will change the key policy rate. The dates for 2014 are 22nd January, 5th March, 16th April, 4th June, 16th July, 3rd September, 22nd October and 3rd December. Today, it will announce the Interest rate decision and the Monetary Policy Report at 2pm GMT. It’s market moving news so be careful if you are trading the CAD. The previous rate was 1% and the expected rate is also 1%. If BoC is of the opinion that the economy is doing better and prices of goods and services might go up (or in other words inflation might go up); it might increase the Interest Rates to counter inflation. This in turn will generally lead to a rise in the CAD. If BoC is of the opinion that the economy is doing the same or worse and prices of goods and services might go down (or in other words inflation might go down); it might decrease the Interest Rates or keep them the same. This in turn will generally lead to a drop in the CAD. So watch out for the news! Happy Trading!
Posted on: Wed, 16 Jul 2014 07:54:23 +0000
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