BoC rate hike seems increasingly likely - Westpac
|A BoC rate hike at their next meeting 12 July seems increasingly likely, BoC Governor Poloz reiterating that the 2015 rate cuts have done their job, points out Richard Franulovich, Research Analyst at Westpac.
Key Quotes
“Markets had trimmed the probability of a 12 July hike to 35% after last week’s soft CPI but have since rebuilt the odds to 60%. Soft inflation will not alter the Bank’s assessment that the recovery is broadening across regions and sectors, that the adjustment to the oil price fall is mostly complete and that the case for leaving insurance has waned. Low inflation will instead be a key factor that shapes the pace/profile of any future hikes beyond unwinding insurance.”
“USD/CAD looks set to take out 1.30 in coming days enroute to a retest of the May 2016 lows around 1.25.”
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.