BoC expected to cut rates next week – TDS

FXStreet (Edinburgh) – Strategists at TD Securities expect the BoC to cut the benchmark rate at bext week’s meeting.

Key Quotes

“Our sense is that the market is piling in on CAD shorts ahead of the July 15th Bank of Canada meeting where we now look for a 25bp cut in the overnight rate”.

“From a macro perspective, we estimate that the output gap is now wider due to the likelihood that Canada is in a technical recession in the first half of this year, and we think the scope for a robust second half rebound is limited”.

“Moreover, we view the decision to cut next week as appropriate from an optics perspective”.

Strategists at TD Securities expect the BoC to cut the benchmark rate at bext week’s meeting…

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