Bank of Canada Governor Stephen Poloz extended the country’s interest-rate pause to four years today and remained neutral on his next move, citing slack in the economy that will keep inflation in check.
Policy makers held the benchmark rate on overnight loans between commercial banks at 1 percent and said the recent jump in exports must be sustained before it triggers the business investment needed to bring the economy to full capacity over the next two years. The decision from Ottawa was expected by all 18 economists in a Bloomberg News survey.
The bank “made it abundantly clear that it saw no prospect for a change any time soon,” Avery Shenfeld, chief economist at CIBC World Markets in Toronto, wrote in a research note. “The key message is that the next move in rates could still be up or down, largely because it is seen as distant enough to be uncertain in either timing or direction.”
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.