Yesterday’s monetary policy decisions from the European Central Bank and Bank of Canada saw Central Bankers maintain their “wait and see” attitude as they continue to be data driven. The ECB left the benchmark rate on hold at 0.05% and maintained asset purchases despite the fact that available supply of securities remains low and scarcity of sovereign debt will prove problematic. The ECB press conference was briefly interrupted by a protestor showering Mario Draghi in confetti before being removed from the premises. Across the Atlantic, Bank of Canada Governor Poloz also maintained interest rate policy, keeping the benchmark at 0.75% as core inflation managed to stay at the 2% target. The Central Bank in its statement cited that the economy likely stalled in the first quarter as the impact of energy prices and slack in the economy hampered growth. USDCAD tumbled outside the multi-month range, breaking lower to the downside after the announcement.
Central Banks Stay the Course
Analisi Giornaliera - 16/04/2015