BoC is universally expected to hold the overnight rate at 0.50% - TDS

Research Team at TDS, suggests that the Bank of Canada is universally expected to hold the overnight rate at 0.50% tonight, though the policy statement and accompanying MPR should maintain the Bank's recent dovish tone.

Key Quotes

“While any further easing of monetary policy remains highly unlikely at this time, we believe that markets are underpricing the probability of such a move (OIS levels currently imply a 2% chance of a cut), given the announcement by Senior Deputy Governor Wilkins that the tailwind to inflation and exports from previous exchange rate moves has played out (see Trading the BoC).

Following the policy statement and MPR, Governor Poloz and Senior Deputy Governor Wilkins will participate in a press conference at 11:15 ET and are later scheduled to testify before the Senate Committee on Banking at 16:15 ET.”