# Loonie notches three-year high as Bank of Canada forgoes micro rate cut - The Globe and Mail

> The Bank of Canada held its overnight rate at 0.25%, ruling out a micro rate cut that markets had partly priced in. The loonie rose to a near three-year high against the US dollar as Wall Street hit record highs.

- Date: 2021-01-20 · published 2021-01-20T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/49369-loonie-notches-three-year-high-as-bank-of-canada-forgoes-micro-rate-cut-the
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Holding rates supports a firmer Canadian dollar, which raises the US-dollar cost of Canadian feed inputs and exports. The decision signals stable Canadian monetary conditions.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/market-news/article-canadian-dollar-rises-as-investors-shrug-off-lower-inflation/

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