BoC min-preview: Will raise policy rate 25bp to 1.75% - Rabobank
|We fully expect the BoC to raise the policy rate 25bp to 1.75% on Wednesday, 24th October.
Key Quotes:
- "CAD OIS implies over a 90% chance of a 25bp hike and analysts surveyed by Bloomberg are unanimous in calling for a move."
- "This decision will be accompanied by a new Monetary Policy Report (MPR) with updated projections and there will also be a press conference."
- "We maintain the view that the BoC will be able to raise rates on just three more occasions (including this week’s move) and will then be forced to hold rates as the backdrop sours."
- "We remain particularly concerned about the outlook for household consumption but we also expect business investment and trade to remain lacklustre."
- "We expect the Fed will invert the curve in Q2 of next year and this should be cause for concern for other central banks, in particular those with economies closely tied to the US."
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