Release Explanation: The discussions that took place at Interest Rate meeting that the Central Bank just completed. Reveals the inner thoughts of Central Bankers and is therefore critical in understanding what each is looking to achieve, and more importantly, how they are looking to get there. Eventually, all releases will be impacted by the consequences of this data as it forms the basis and direction of the next Central Bank meeting. A currency will eventually be affected by these numbers as Institutions re-align existing positions to reflect the Central Banks sentiment, and as they then build new positions in reaction to any new data.

Trade Desk Thoughts: The Bank of Canada today lowered its main policy rate to 0.50% and signaled it could follow the Federal Reserve by initiating a program of quantitative easing.

The Bank is refining the approach it would take to provide additional monetary stimulus, if required, through credit and quantitative easing, the central bank said in a statement. Officials plan to release details regarding how such a plan would work in April.

Officials moved to a conditional monetary policy and signaled rates could be reduced further. The target for the overnight rate can be expected to remain at this level or lower at least until there are clear signs that excess supply in the economy is being taken up, the bank said in its statement.

In January, Bank of Canada governor Mark Carney called quantitative easing a highly unlikely, remote situation.

Carney, who has now lowered rates by 350 basis points since February 2008, said the Bank of Canada has already injected as much as C$41 billion into financial markets to spur lending, sought wider legal power to fix markets and accepted new types of collateral. The federal government is also buying up to C$125 billion of mortgages to give banks more cash to use for new loans.

Forex Technical Reaction: The cad declined in the three hours leading up to the decision as crude gained about $1.50. It gained about 100 pips in the 30 minutes after the rate decision was announced.