BoC held rates at 2.25% as expected. The dovish "gradual" recovery language briefly nudged the loonie lower before it recovered to near C$1.3650. Next decision July 16.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
The Canadian dollar held a tight range Wednesday after the Bank of Canada kept its benchmark rate at 2.25%, a widely expected hold that marked the sixth consecutive meeting without a change.
The central bank said the economy is beginning to recover from a sluggish start to the year, though it offered no timeline for a future move. Governor Tiff Macklem and his deputies noted that inflation remains above the 2% target but that first-quarter weakness gave them room to wait.
Traders latched onto the statement's description of the recovery as "gradual," a word several read as dovish. The loonie slipped briefly after the release, then recovered to trade near C$1.3650 against the U.S. dollar, little changed on the session.
Canada's economy grew at an annualized 1.7% in the first quarter, below the BoC's forecast of 2.0%. Consumer spending softened and business investment pulled back. The central bank now expects growth to pick up through the second half, supported by household spending and exports.
The next rate decision is scheduled for July 16. Markets price about a 30% chance of a quarter-point cut by then, according to overnight index swaps.
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