The CAD/CHF currency pair settled below recent high of 0.5847, its strongest level since September 2nd, in the wake of the Bank of Canada’s and the Swiss National Bank’s policy decisions.
The Bank of Canada kept its benchmark interest rate intact at 2.25% at its December 10th policy meeting, in line with market consensus.
GDP growth surprised to the upside, with economy expanding 2.6% in the third quarter, and the labor market improved, with the unemployment rate slipping to 6.5% in November.
Consumer inflation eased to 2.2% in October and policy makers judged measures of core inflation were still within the 2.5% to 3% range.
The BoC Governing Council said it viewed the current policy rate about right to keep inflation near 2%, while supporting the economy through this period of structural adjustment.
Meanwhile, the Swiss National Bank left its policy rate without change at 0% at its December 11th meeting, in line with market consensus.
Inflation has remained subdued, at 0.0% in November, down from 0.2% in August, because of lower cost of hotels, rents and clothing.
The central bank now forecasts average inflation at 0.2% for 2025, at 0.3% for 2026 and at 0.6% for 2027.
The SNB also reaffirmed its readiness to intervene in the Forex market if needed.
The minor Forex pair lost 0.69% for the week.
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