The Bank of Canada held rates steady at 0.25%. They said the stronger CAD is moderating growth but it did not say its rise was “unprecedentedly rapid” as it had previously. The BOC upped its forecast for GDP t0 -2.3% in 2009 from -3.0% previously. It cut 2010 growth to 3.5% versus 4.7% back in April.
The Loonie is rallying as USD/CAD drops through 1.10. It trades now at 1.0980.
