BoC: Nothing in the statement signals taper is imminent

As expected, the Bank of Canada, kept its monetary policy unchanged after the June meeting. According to National Bank of Canada analysts, there was nothing in the statement to signal a taper was imminent. They warn the situation could change depending on how June jobs numbers shake out and how the Federal Reserve alters its policy stance next week.

Key Quotes:

“There was nothing all that surprising in today’s statement. With the economy performing broadly in line with the Bank’s April projections, we didn’t see scope for any hawkish adjustments to policy. As it relates to July’s policy meeting, there was nothing in the statement to signal a taper was imminent, although we are certainly flagging this as a non-trivial possibility depending on how June jobs numbers shake out and if/how the Fed alters its policy stance next week. A strong and broad-based bounceback in employment combined with a less accommodative Fed would certainly give the BoC more comfort in stepping down the pace of its bond purchases once again.”

“As for the policy rate, it’s unlikely July will bring a change in forward guidance but we continue to flag the BoC’s less flexible policy mandate and upside risks to output gap closure as drivers for a rate hike earlier in its forward guidance “window” (i.e. in Q3 rather than Q4).”

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.