Canada: BoC to cut by 50 bps next month – TDS
|Prime Minister Trudeau announced fiscal stimulus along with liquidity measures for households and small businesses while Finance Minister Morneau and BoC Governor Poloz didn't offer much new, economists at TD Securities apprise.
Key quotes
“The Canadian government announced $27bn worth of fiscal stimulus along with $55bn worth of liquidity measures for households and businesses through tax deferrals.”
“Governor Poloz had little to add in his presser today with no new announcements, though he did state that the BoC is focussed on providing sufficient market liquidity.”
“The Governor tried to dull expectations for another intermeeting cut, stating that he would like to have the benefit of a full forecast round before moving interest rates again.”
“We look for the Bank to cut by 50 bps next month.”
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.