Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
BoC Leaves Rates Unchanged at 0.25% - Foresees Inflation at 3% for 2022

BoC Leaves Rates Unchanged at 0.25% - Foresees Inflation at 3% for 2022

Richard Snow, Analyst
What's on this page

BoC Decides to Leave Rates Unchanged

* Update 15:28 GMT

Bank of Canada decides against raising the overnight target rate. Remains at 0.25%

For live economic data bookmark our customizable economic calendar

the Bank expects Canada’s economy to grow by 4% in 2022 and about 3½ % in 2023. Admits the economic slack has been absorbed however continues its reinvestment phase, maintaining its overall holdings of Gov bonds roughly constant.

“In Canada, GDP growth in the second half of 2021 now looks to have been even stronger than expected. The economy entered 2022 with considerable momentum, and a broad set of measures are now indicating that economic slack is absorbed” – Bank of Canada

The Bank foresees diminishing supply shortages resulting in inflation dropping to around 3% from 48% currently, by year end.


The Bank of Canada has emerged as one of the most hawkish of the major central banks, at least as far as market expectations are concerned - see below.

Markets Predictions: Implied probabilities derived form rate markets suggested 5 hikes for 2022 just prior to the decision and around 80% probability of a 25 bps hike after today’s meeting.

Analyst Predictions: seven out of thirty one economists polled by Reuters favored a hike which highlights the divergence in thinking between ‘professionals’ and the general market.

Hotter Inflation, Stronger Labor Market & the Economy

Canadian inflation sits at 4.8% (CPI), above the 1-2% target, however this is some way off US CPI which stands at 7%. Later we hear from the FOMC regarding its interest rate decision so keep an eye on the economic calendar and our live coverage of the event. The jobs market has recovered well and currently sits 240k above pre-pandemic levels.

Immediate Response in USD/CAD

*The 5 minute USD/CAD chart revelas an immediate spike in US/CAD which was to be expected gven that a rate hike was largely priced in. The move reached 82 pips higher and currently trades around 60 pips higher than before the release, so still elevated somewhat.

USD/CAD 5 min chart
Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Richard Snow
Trading Forex News: The Strategy
Get My Guide

--- Written by Richard Snow for

Contact and follow Richard on Twitter: @RichardSnowFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.