# Bank of Canada hikes rates, becomes first major central bank to signal pause

> The Bank of Canada raised rates and became the first major central bank fighting inflation to signal it would likely hold off on further hikes. The Canadian dollar traded 0.3% lower at 1.3410 per US dollar. The two-year government bond yield eased nearly 6 basis points to 3.596%.

- Date: 2023-01-25 · published 2023-01-25T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/38033-bank-of-canada-hikes-rates-becomes-first-major-central-bank-to-signal-pause
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A signaled pause by a major central bank can weaken the US dollar and lift risk assets, which tends to support commodity prices. Lower expected rates also reduce the cost of carrying inventories for feed buyers.

## Read by commodity

- USDCAD: neutral

## Sources

- reuters.com: https://www.reuters.com/markets/rates-bonds/bank-canada-hikes-rates-becomes-first-major-central-bank-signal-pause-2023-01-25/

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