Bank of Canada changes QE program

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On July 14, at 14:00 GMT, the Bank of Canada made a rate statement and published its Monetary Policy Report of July 2021. In general, the bank kept its interest rate unchanged. Although, the central bank adjusted its quantitative easing program.

Quoting the statement: "The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate.

This is reinforced and supplemented by the Bank's quantitative easing (QE) program, which is being adjusted to a target pace of $2 billion per week. This adjustment reflects continued progress towards recovery and the Bank's increased confidence in the strength of the Canadian economic outlook."

Monetary Policy Statement

Bank of Canada maintains policy rate and forward guidance, adjusts quantitative easing program

Monetary Policy Report

Monetary Policy Report - July 2021

In the aftermath of the release, the USD/CAD surged more than 50 base points. However, prior to the surge, the rate dipped by 36 points. Meanwhile, by looking at the larger scale, it can be observed that the rate managed to recover to the day's morning trading levels.

Initial Reaction

Larger scale situation

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