BoC to hold the overnight rate steady - TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities are expecting the Bank of Canada to hold the overnight rate steady at 1.75% this week, which is already fully priced into markets.

Key Quotes

“The Bank will have to acknowledge recent developments in the energy sector and financial markets, but will try to strike a balanced tone as the longer term forecast is largely intact (we expect just modest downward revisions to 2019 growth). We look for Poloz to reiterate that the policy rate will need to move back to the neutral range - depending on the data, of course.”

“If the Bank succeeds in striking a balanced tone, we look for a short-lived and modest move higher in front-end rates. Markets will not fully recommit to rate hikes in Canada while pricing in cuts in the US.”

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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