Bank of Canada - Interest Rate Statement strengthens the Canadian Dollar

This Thursday afternoon of March 8th 2012 at 14:00 GMT (9:00 EST) the Bank of Canada released there announcement on Interest Rates. All analysts surveyed expected no change from the Central Bank, however they do release a statement about why they decided not to change the rate this time.

These statements are watched by the market to see if they give any clues about the next move from the Bank of Canada. Sometimes they include revisions to the Central Banks forecasts on GDP and CPI inflation.

Anyhow as expected the BOC left rates unchanged at 1.00% however they did make some positive statements on growth, they also said that monetary policy was already low and there was lots of stimulus which sounded like "we are not going to be giving you anymore because you already have enough"...this is what a parent says to a little child when they ask for more candy. The markets want candy, which is cheap money dumped on them from Central Banks. ;)

Anyway here is a link to the statement.

The Canadian Dollar appreciated by about 40 pips, however in the heat of the moment it may have been difficult to catch it if you were still reading thru the statement. There must be algorithmic language processing programs that interpret the statement pretty quickly. Here the charts:

First is the 10 second chart of the USDCAD

This is the 10 second chart of the CADJPY