BoC likely to keep the overnight rate at 0.50% - RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, expects the BoC to keep the overnight rate at 0.50%.

Key Quotes

“The Bank is likely to revise its growth forecasts lower and the closure of the output gap will be pushed out to 2018 from late-2017 currently. Our economists see this as an implicit easing bias and, with only around a 10% probability of a rate cut discounted for early 2017, the risk is asymmetric to the downside for CAD.”