CAD: Bank of Canada to be a fairly uneventful affair – TDS

Research Team at TDS, suggests that the Bank of Canada steps up, but without an MPR or press conference and in the absence of any major economic shock since January, it should be a fairly uneventful affair.

Key Quotes

“Neither TD nor the market expect any change to the overnight rate at 0.50%. TD’s expectations are based around a set of three factors. First is the erosion of financial conditions since January, largely caused by the rapid appreciation of the Canadian dollar. Offsetting that is the 0.8% quarterly growth in Q4 above the Bank’s official 0% target. And third is the expected fiscal stimulus which will be revealed in the March 22nd budget. As they balance each other out, good reason to pause.”

Research Team at TDS, suggests that the Bank of Canada steps up, but without an MPR or press conference and in the absence of any major economic shock since January, it should be a fairly uneventful affair.

(Market News Provided by FXstreet)