The Bank of Canada lifted rates to 2.50% while the Federal Reserve held steady at 3.75%-4.00%, narrowing the interest rate spread between the two nations.
BoC raised rates to 2.50% while Fed held at 3.75%-4.00%, narrowing the rate differential, but CAD barely moved.
The Bank of Canada increased its benchmark interest rate to 2.50% on Wednesday, narrowing the policy gap with the U.S. Federal Reserve. Despite the 25-basis-point shift in the rate differential, the Canadian dollar remained largely unchanged against the greenback.
The gap narrowed by 25 basis points after the Bank of Canada raised its rate to 2.50% while the Federal Reserve kept its rates steady.