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Markets Largely Ignore Wednesday's Bank of Canada Policy Action, Says Scotiabank

BY MT Newswires | ECONOMIC | 12:37 PM EDT

12:37 PM EDT, 06/10/2026 (MT Newswires) -- The Bank of Canada left its overnight rate unchanged at 2.25% on Wednesday, as universally expected, said Scotiabank.

The broad tone of the statement and Governor Tiff Macklem's opening remarks to his press conference continue to suggest it is in monitoring mode, avoiding overreaction to any developments whatsoever and seeking further clarity on key risks to the inflation outlook.

The overall communications were in line with expectations for now and ahead of the key second half of the year, noted the bank. The tone was neutral as the BoC took in more information, which is entirely as expected.

"There was nothing new" on Wednesday, stated Scotiabank, and as a consequence, "there was little reaction."

The Canadian dollar had been appreciating after a soft United States core consumer price index and then retraced much of that move to land very little changed, added the bank.

The Canadian two-year yield was rising into the statement and then consolidated the move to land about 2bps to 3bps lower post-statement. Canada's curve is performing very close to the U.S. on Wednesday, according to Scotiabank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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