Bank of Canada raised to 1.0%, as expected, harriers grows

Bank of Canada raised the target rate on overnight loans at 0.25 percentage points to 1,0%. Such a decision was expected the market, but sparked a wave of purchases of Canadian currency in the first minutes after release. In comments accompanying the decision all that concerns the world economy, in line with recent trends have been surrounded by the words: uncertainty and instability. There is also a slowdown in their economies during the second quarter, although "in line with expectations". It is said also that the now expected more modest growth compared with the estimate published in June. Nevertheless, says that in the future growth of consumer activity remains robust, and business activity dramatically increases. The tightening of monetary policy, conducted earlier this year, led, according to the Bank, a slight increase in interest rates on borrowed funds, but the current conditions remain "extremely challenging". The last sentence says that the Bank of Canada left the door open for future increases in the near future.
Canadian dollar in less than half an hour, rose to 1,041 dollars to 1.049, but, nevertheless, still very far from the minima of the previous day at 1.0350.

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