# Monetary policy, interest rates and the Canadian dollar - Bank of Canada

> A Bank of Canada staff note explains how interest rate differentials between Canada and the United States drive the Canadian dollar's exchange rate. It notes that the loonie fell in 2024 by more than the rate wedge alone would imply.

- Date: 2025-02-04 · published 2025-02-04T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/26279-monetary-policy-interest-rates-and-the-canadian-dollar-bank-of-canada
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Background on loonie drivers helps buyers judge currency-driven shifts in Canadian feed and oilseed export pricing, though it contains no new market shock.

## Read by commodity

- USDCAD: neutral

## Sources

- bankofcanada.ca: https://www.bankofcanada.ca/2025/02/staff-analytical-note-2025-2/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.