Bank of Canada Holds Rates Steady, Governor Calls Economy Weak

The Bank of Canada maintained its policy interest rate unchanged while Governor Tiff Macklem characterized the Canadian economy as "weak." Canadian government bonds rallied across the yield curve following the announcement. The dovish tone from the BOC Governor could weaken CAD across major pairs as markets may now price in potential future rate cuts. USD/CAD likely to see upward pressure while CAD crosses may decline on growth concerns.