The Canadian dollar fell against most major rivals on Wednesday after an expected policy decision by the BOC.

The Bank of Canada announced the first interest rate cut in four years. It comes after the bank started an aggressive policy tightening process in March 2022 that saw it add 475 basis points to interest rates to 5%.

With todays decision, the BOC cut rates by 0.25% to 4.75% as expected.

The BOC said in its policy statement that it achieved progress in controlling inflation, with confidence increasing that inflation is heading towards the 2% target.

The BOCs decision comes as inflation slowed down from 3.4% in December to 2.7% in April.

On trading, the CAD/USD pair fell 0.1% as of 20:20 GMT to 0.7305.

The Aussie

The Australian dollar stabilized at 0.6651 against its US counterpart.

According to government data, Australias GDP grew by 0.1% in the first quarter, while analysts expected a 0.2% growth rate.

The Dollar

The dollar index rose 0.2% as of 20:05 GMT to 104.2, with a session-high at 104.4, and a low at 104.1.

Earlier data showed the US private sector added 152 thousand new jobs in May, compared to the addition of 188 thousand new jobs in April, indicating a slowdown in the labor sector, and boosting hopes of Fed rate cuts this year.

The fuller US payrolls report will be released on Friday and will impact the pricing for future Fed rate cuts.