BoC likely to keep policy rates unchanged - TDS
|Analysts at TDS are looking for the Bank of Canada to keep policy rates unchanged at its December decision, in line with consensus (with 22 out of 26 forecasters calling for a hold).
Key Quotes
“The statement will be slightly upbeat, dropping the “labour-market-slack” idea, reaffirming its confidence that inflation will firm by next year, and repeating its concerns over NAFTA uncertainty. No explicit guidance about the timing of the next hike is expected, but the statement will be clear about the next move being up.”
“Our view remains for the BoC to hike in January. The output gap is closed and last week’s LFS report killed the “slack-in-the-labour-market” narrative.”
“Additional positive surprises in the labour market and a more hawkish Fed could bring forward our July rate hike to April, but the BoC is expected to hike more slowly and by less than the Fed over the next year.”
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.