# Why the U.S. Fed rate hold is good news for the loonie — and the Bank of Canada - National | Globalnews.ca

> The U.S. Federal Reserve held rates steady in June, its first pause after 10 consecutive hikes, while the Bank of Canada had resumed hiking a week earlier. BMO economists said the divergence could strengthen the Canadian dollar and ease the inflation fight in Canada. Markets were leaning toward another Bank of Canada hike in July.

- Date: 2023-06-14 · published 2023-06-14T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/35743-why-the-u-s-fed-rate-hold-is-good-news-for-the-loonie-and-the-bank-of-canada
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Divergent rate paths favour a firmer loonie, which affects the cost of Canadian-denominated feed inputs relative to U.S.-priced grains. The impact on global feed prices is modest.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- globalnews.ca: https://globalnews.ca/news/9768262/loonie-us-federal-reserve-rate-decision-canada/

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