Forex Pros - The Bank of Canada left its benchmark interest rate unchanged in March, it announced on Tuesday.
In a statement, the bank said it was leaving its overnight cash rate unchanged at 1.00%, broadly in line with expectations.
According to the BoC, the global economic recovery was proceeding broadly in line with the bank's projection in its January Monetary Policy Report, although risks remain elevated.
The accompanying rate statement released after the announcement said, "While global inflationary pressures are rising, inflation in Canada has been consistent with the Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the considerable slack in the economy."
The statement added that, "Any further reduction in monetary policy stimulus would need to be carefully considered."
Following the announcement, the Canadian dollar was down against its U.S. counterpart, with USD/CAD gaining 0.09% to hit 0.9724.
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