Canadian Dollar Weakens as Central Bank Says Rate Appropriate
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The Canadian dollar approached its weakest point in eight months against its U.S. counterpart after the Bank of Canada indicated it won’t raise interest rates anytime soon with inflation slowing more than expected.
The currency declined as central-bank Governor Mark Carney softened language about tighter policy for the second meeting in a row, saying inflation will “remain low in the near term” in an economy with “material excess capacity.” Carney retained the warning rates will rise over time amid speculation it would be dropped entirely. The central bank kept its benchmark rate at 1 percent.