Unexpectedly, the Bank of Canada left rates unchanged as they see rates leveling out back to 2% in the long term. Along with this, the BoC has foreseen the Canadian economy to grow by 4% by the end of 2022 and 3.5% in 2023, following the growth rate of 4.5% in 2021.
The BoC has also decided to continue its reinvestment phase, maintaining its current holdings of government bonds. Inflation is expected to stay consistently at 5% for the first half of the year and decline to 3% as supply shortages decrease.
To learn more how this affected USD/CAD from a technical standpoint, please take a look at the following link: