FXStreet (Delhi) – Research Team at BBH, suggests that the Bank of Canada is widely expected to maintain its neutrality in today’s meet.
Key Quotes
“The BOC has cut rates twice already this year in response to the disappointing economic activity, yet Canada is still struggling and growth is fragile. Unemployment has steadily risen over the past year. Last month it stood at 7.1%, which matches the highest level since the end of 2013. It was 6.6% in January.”
“The new Liberal government’s platform suggests greater fiscal support will be forthcoming. This too may take off some of the residual pressure on the central bank to ease monetary policy further. While many expect the Bank of England to follow the Federal Reserve as the major bank to raise rates, there is beginning to be talk that Canada could be third, but not until 2017. A break of the CAD1.30 area may set the tone for the next week or two.”
(Market News Provided by FXstreet)