BoC: Nominal neutral interest rate dropped to 2.5%-3.5% range - ANZ

Sandeep Kanihama FXStreet Contributor

Analysts at ANZ note that the BoC dropped its nominal neutral interest rate to a range of 2.5% to 3.5% (from 4.5 to 5.5%).

Key Quotes

“Being a small open economy, it views the Canadian neutral rate as a function of the global neutral rate, plus a country specific risk premium. For the global neutral rate it believes it has declined and is likely to remain low over the long-term.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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