BoC is eyeing CAD strength - Rabobank
|Analysts at Rabobank note that the Bank of Canada is eyeing CAD strength as since May, the Canadian dollar has been on an appreciating trend, from near-1.38/USD before the summer to under 1.22 in early September.
Key Quotes
“BoC Governor Lane explained that the earlier decision to hike rates was made in the context of strong exports and investments. He added however that they will continue to monitor the impact of higher BoC rates. CAD strength resulting from the BoC’s recent hikes could have significant impact on export demand. Lane therefore warned that “as the Canadian dollar is strengthening, we’re certainly wathing that closely and we’ll be taking that into account pretty strongly in making our decisions”.The market has cut its expectations for another hike in October from around 53% to approximately 41%.”
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