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The Bank of Canada raised its target overnight rate by 25 basis points to 4.5% and said it would continue quantitative tightening. The central bank said it expects to hold the policy rate steady while it assesses the cumulative effect of past increases.
It also noted that China's reopening is an upside risk to commodity prices.
Higher Canadian rates tighten financing costs and may slow domestic demand, while signals of a pause ease pressure on the currency. The reopening comment points to firmer commodity demand from China, which could support prices for oilseeds and grains.
bankofcanada.caMedia RelationsJan 25, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
