The CAD/SEK currency pair rebounded from a 5-year low of 6.4724 on Monday ahead of the outcome of the Bank of Canada’s and Sweden’s Riksbank policy meetings.
The Bank of Canada is expected to keep its benchmark interest rate intact at 2.25% at its January 28th policy meeting.
The minutes from the BoC’s December meeting showed that policy makers agreed the “current stance is appropriate” and noted it was “difficult to predict the timing or direction of the next rate move.”
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.
Officials also reaffirmed that they were ready “to respond if the outlook changes materially.”
Meanwhile, Sweden’s Riksbank is expected to leave its key policy rate intact at 1.75% at its January 29th meeting.
In December, policy makers again indicated that borrowing costs would likely remain at this level for some time.
The Riksbank also noted that economic prospects had improved, while inflation was approaching the 2% target.
Sweden’s annual consumer inflation has remained stable at 0.3% in December, the lowest rate since May, the latest data showed.
And, Sweden’s consumer price index with a fixed interest rate (CPIF), Riksbank’s target variable for inflation, went up 2.1% year-on-year in December.
The CAD/SEK currency pair was last down 0.16% on the day to trade at 6.5149.
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