FXStreet (Edinburgh) – Market consensus remains divided over this week’s BoC interest rate decision, noted the research team at TD Securities.
Key Quotes
“The key event risk this week is the Bank of Canada’s interest rate decision on Wednesday. There, we expect a rate cut to 25 bps, but it is still a close call”.
“Bloomberg’s forecast panel is about evenly split on the decision, but market views have started to converge to our expectation for a cut and rates markets are now pointing to over a 60% probability of a move”.
“With the domestic economy continuing to struggle amid plunging oil prices, a rate cut now seems like prudent risk management”.
“It remains an open question, however, whether the CAD’s rapid depreciation since the start of the year will be enough of an offset to sway policymakers to hold their fire”.
(Market News Provided by FXstreet)