# Canadian Dollar Jilted by BoC Over Pint of QE at the 'Effective Lower Bound'

> The Bank of Canada cut its cash rate by 50 basis points to 0.25% and launched a quantitative easing program to buy C$5bn of government bonds each week. It also created a Commercial Paper Purchase Program. The Canadian dollar weakened after the decision, as economists noted there is room for more stimulus.

- Date: 2020-03-27 · published 2020-03-27T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/54360-canadian-dollar-jilted-by-boc-over-pint-of-qe-at-the-effective-lower-bound
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Lower Canadian interest rates and QE tend to weaken the loonie, which raises the cost of U.S.-priced imports for Canadian feed buyers. The additional easing signals that policy support will continue to weigh on the currency.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/cad/13028-canadian-dollar-jilted-by-boc-over-pint-of-qe-at-the-effective-lower-bound

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