The CAD/CHF currency pair remained under pressure not far from Friday’s all-time low of 0.5829, as traders grappled with uncertainty regarding the Trump administration’s tariff policy, supporting the Swiss Franc, ahead of the outcome of the Bank of Canada’s policy meeting.

The Bank of Canada is expected to keep its benchmark interest rate without change at 2.75% at its April 16th policy meeting.

The BoC has now delivered 225 basis points of rate cuts since the beginning of the monetary easing cycle in June 2024.

The central bank has warned that “monetary policy cannot offset the impacts of a trade war.” An escalation in trade tensions could disrupt job market recovery, increase inflationary pressures and curb growth. The BoC projects moderate growth in the first quarter of the year due to the trade conflict’s impact on “sentiment and activity.”

The BoC policy decision will be preceded by Canada’s CPI inflation data for March.

The median CPI inflation probably picked up to 3% in March, according to market consensus, from 2.9% in February.

The trimmed-mean core inflation rate, the Bank of Canada’s preferred measure of underlying inflation, probably rose to 3% in March from 2.9% in February.

The CAD/CHF currency pair was last up 0.15% on the day to trade at 0.5877.