Highlights of the Bank of Canada rate decision on October 21, 2015:
– Sees economy returning to full capacity around mid-2017 versus July estimate of H1 2017
– Continued neutral stance "The Bank judges that the current stance of monetary policy remains appropriate."
USD/CAD was slow to react but it’s jumped up to 1.3068 now. That’s the right direction. Pushing back the closing of the output gap is dovish despite the neutral stance. Any further deterioration in the Canadian or global outlook (or a fall in oil prices) will cause them to cut rates again.
