BoC to be cautiously optimistic next week – TDS
|Analysts at TD Securities are expecting the Bank’s tone next week to be cautiously optimistic next week and they will acknowledge softer household spending but are likely to argue that population growth and wages will support solid spending growth going forward, while easing trade tensions will support business investment and exports.
Key Quotes
“The Bank will also incorporate new fiscal measures in their forecast this quarter — and while details of coming policy measures have been sparse, recently announced tax measures should also provide a lift to household spending forecasts. The Bank will still have to lower its forecast for 2019Q4, but it will remain above our tracking of 0.5% — and to a significant extent to the negative revisions will be offset by quicker growth in 2020Q1.”
“We expect the Bank’s forecast for growth in 2020 and 2021 to be unchanged at 1.7% and 1.8% respectively, with an upside risk to the 2021 growth forecast. Similarly, forecasts for global growth should be stable to slightly higher, which will give the communique a hawkish tinge.”
“Look for the Bank to continue to describe the economy as operating close to capacity, with CPI and core CPI inflation expected to remain near target.”
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.