Bank of Canada leave rates on hold at 0.25%
5 June 2009
The Bank of Canada held its key interest rate unchanged on Thursday at 0.25 percent, as expected, but sent a shot across the bow of currency markets with unusually strong comments on the threat posed by the sharp appreciation of the Canadian dollar.
It made note of recent significant improvements in financial conditions and commodity prices and a modest recovery in consumer and business confidence. But the bank said all of that could be lost if the Canadian dollar -- which rose 9.3 percent against the U.S. dollar in May -- continues to rise.