Canadian dollar jumps as Bank of Canada lifts benchmark rate 25bps
The Canadian dollar jumped against its U.S. counterpart on Wednesday morning, after the Bank of Canada raised its interest rate to 1% from 0.75%. This is the BoC's second rate hike this year - the first having been in July. Analysts prescribed a higher likelihood to an October rates change but highlighted supportive economic data, such as its second quarter GDP which beat expectations last week, as a strong backdrop for a potential hike prior to the announcement. One U.S. dollar bought C$1.2196 following the decision, compared with C$1.2375 late Tuesday in New York. The yield on Canadian 10-year government bonds jumped 10 basis points to 1.962%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.