BoC: Policy rate likely to remain unchanged - Rabobank
|Christian Lawrence, analyst at Rabobank, expects the BoC policy rate to remain unchanged at 1.75% today, which is also unanimously expected by the 21 analysts surveyed by Bloomberg.
Key Quotes
“CAD OIS implies almost no chance of either a hike or a cut at this meeting and only around a 15% chance of a 25bp hike by the October meeting. Although a more dovish tone than January can be expected, the BoC isn’t likely to discuss easing and the door will be left open for further rate hikes and a move towards ‘neutral’.”
“We do not expect any further rate increases this cycle and expect the BoC to cut rates 25bp in 2020 Q2. This call is partly reliant on Rabo’s forecast for no further Fed hikes this cycle.”
“We remain particularly concerned about the outlook for household consumption but we also expect business investment and trade to remain lacklustre. This week’s decision will not be accompanied by a new Monetary Policy Report (MPR). We favour USD/CAD primarily trading in a 1.32-1.34 range this year but see some room for a short-lived move down to 1.31 in April.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.