Bank of Canada to hold rates until at least early 2020 - Reuters Poll

According to the latest Reuters poll, a majority of the economists expect the Bank of Canada (BOC) to steer the monetary policy on a steady course for the balance of this year while calling on for a rate not until at least early 2020.

Key Findings:

“The April 12-16 poll of over 40 economists brings expectations for the BoC in line with those for the U.S. Federal Reserve and other major central banks, which are now forecast to stay on the sidelines this year.

All economists polled said the BoC will hold rates at 1.75 percent at its April 24 meeting and about 60 percent of them say they will stay there through to the end of this year.

The median forecast shows the central bank will hike in the first quarter of next year to 2.0 percent, but the sample was split. The rates are forecast to stay put after that through to end-2020.

Almost 90 percent of economists who answered an additional question said a rate cut was unlikely by end-2020 as they remain hopeful the economy will muddle through its current rough patch.

Gross domestic product (GDP) growth was forecast to average 1.6 percent this year and 1.7 percent next, a downgrade from 1.8 percent predicted for both those years in the January poll.

The median probability of a recession in the next 12 months was 20 percent, and 27.5 percent in the next two years. That compares with a 25 percent probability of a U.S. recession in the next 12 months and 40 percent chance in the next two years.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: risk-off taking over on trade war escalation

The American Dollar sold off Friday, following US President Trump´s anger discharge on Twitter. The pair soared to 1.1152, its highest for the week, to finally settle at around 1.1140.


GBP/USD: Johnson and Tusk engaged in the blame-game

The GBP/USD pair flirted with the 1.2300 figure late Friday, ending the week with substantial gains around 1.2280, backed by Brexit hopes and the dollar’s broad weakness.


USD/JPY: lower lows at sight on the run to safety

The USD/JPY pair sunk Friday, following US President Trump’s fury with China and Fed’s head Powell, as the market rushed into safety. US yield curve inverted again, fears of recession rule.


Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more