Bank of Canada Survey: Policy rate forecast to decline by 50 bps by year-end

Eren Sengezer FXStreet

The Market Participants Survey for the fourth quarter of 2022 published by the Bank of Canada (BOC) showed on Monday that the median of responses for the policy rate by end-2023 stood at 4%, forecasting a 50 bps cut.

The median forecast for the real Gross Domestic Product (GDP) points to a fall of 0.4% in 2023 and an expansion of 2% in 2024.

Market reaction

USD/CAD retreated from the weekly high it set at 1.3475 earlier in the session after this report and was last seen trading at 1.3445, where it was up 0.35% on the day.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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