Another Friday cut from BOC

<h3>USDCAD, H1</h3>
<p>Bank of Canada cuts rates by 50 bps to 0.25%. A rate reduction to the 0.25% setting was widely expected either at or before the April 15 announcement date. Governor Poloz announced: “This unscheduled rate decision brings the policy rate to its effective lower bound and is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic.” The Bank launched two new programs:</p>
<p>1. Commercial Paper Purchase Program (CPPP) to help alleviate strains in short-term funding markets and thereby preserve a key source of funding for businesses.</p>
<p>2. Acquisition of Government (GoC) securities in the secondary market, with purchases beginning with a minimum of C$5 bln per week across the yield curve.</p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/03/2020-03-27_16-09-32.jpg"><img class="alignnone size-medium wp-image-118872" src="https://analysis.hotforex.com/wp-content/uploads/2020/03/2020-03-27_16-09-32-300×272.jpg" alt="" width="300" height="272" srcset="/wp-content/uploads/2020/03/2020-03-27_16-09-32-300×272.jpg 300w, /wp-content/uploads/2020/03/2020-03-27_16-09-32-463×420.jpg 463w, /wp-content/uploads/2020/03/2020-03-27_16-09-32.jpg 695w" sizes="(max-width: 300px) 100vw, 300px" /></a><a href="https://analysis.hotforex.com/wp-content/uploads/2020/03/2020-03-27_16-10-59.jpg"><img class="alignnone wp-image-118882" src="https://analysis.hotforex.com/wp-content/uploads/2020/03/2020-03-27_16-10-59-300×263.jpg" alt="" width="307" height="269" srcset="/wp-content/uploads/2020/03/2020-03-27_16-10-59-300×263.jpg 300w, /wp-content/uploads/2020/03/2020-03-27_16-10-59-696×610.jpg 696w, /wp-content/uploads/2020/03/2020-03-27_16-10-59-479×420.jpg 479w, /wp-content/uploads/2020/03/2020-03-27_16-10-59.jpg 702w" sizes="(max-width: 307px) 100vw, 307px" /></a></p>
<p>The Bank is coordinating with the G7 and fiscal authorities and “stands ready to take further action as required to support the Canadian economy and financial system and to keep inflation on target.”</p>
<p><strong>USDCAD</strong> rallied to 1.4155, after trading near 1.4070 and <strong>CADJPY</strong> continued to track lower breaching S2 to trade at 76.65.</p>
<div>
<p><strong>Click </strong><a href="https://www.hotforex.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong> to access the HotForex Economic Calendar</strong></p>
<p><strong>Stuart Cowell</strong></p>
<p><strong>Head Market Analyst</strong></p>
<p><strong>Disclaimer: </strong>This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.</p>
</div>
<div></div>