BOC Preview: Laser-focus on whether central banks will “pivot” – Goldman Sachs
Analysts at Goldman Sachs offer a sneak peek at what to expect from Wednesday’s Bank of Canada (BOC) interest rate decision.
Key quotes
"This week's Bank of Canada meeting is a close call, with consensus split on whether they will take another step down in the hiking pace after more mixed activity news and a slightly softer Business Outlook Survey, but still-firm inflation.”
"This could have important implications for CAD; the market is laser-focused on whether central banks will "pivot" or at least "fall off the pace" of the Fed.”
“So far this year, the Canadian Dollar has been a clear outperformer due to the BoC's aggressive actions and the loonie's tight links with the USD. However, as recent AUD depreciation demonstrates, if the BoC gives the impression that it is starting to take a more balanced approach, then CAD would probably see some of that outperformance fade.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
