investment review

September 30, 2017 - BOC On The Rise

The Bank of Canada raised interest rates by 25 b.p. at each of its two meetings during the third quarter. The rate hike in early July was expected by the markets, however, the subsequent move in September caught a few investors off-guard as many felt the next move would not occur until October. The Canadian dollar rallied dramatically on the back of these moves and touched a high of 1.21 in early September. However, follow-up comments by the BOC indicated that there is no predetermined path for interest rates and that future moves would be very much data dependent. The BOC also mentioned that they would keep an eye on the level of the Canadian dollar, given the impressive strength that the dollar has shown this year. The dollar retreated at the end of the quarter on these dovish comments by the BOC.

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