Bank of Canada interest rate decision is due at 1500 GMT on March 1. Here is the Preview of BOC rate statement. Is there any Chance of a price hike?
AtoZForex, 01 March – The Bank of Canada isn’t going to make a move on Wednesday but the economists are unanimous and the OIS market is barely humoring the chance of a price hike. There is a zero percent chance of a price hike. But, for the April and May decisions, the cut chances are 2.0% and 4.0%, respectively.
Preview of BOC rate statement
The Bank of Canada statement always comes at the end and the statement looks like this:
“In the context of a projection that is largely unchanged, the Bank’s Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent.”
The USDCAD surged nearly 3 cents in the following three days. The overall expectations are very low for any kind of market move at this meeting as there will be no MPR or press conference afterward.
Analysts at ING commented that the Bank of Canada will set interest rates today and the little price hike is expected at this meeting. Also, the expectations for the price hike is higher for the April 12th meeting. Moreover, the new monetary policy is going to release on April 12.
Latest Bank of Canada statement:
“The Canadian dollar has strengthened along with the US dollar against other currencies, exacerbating ongoing competitiveness challenges and muting the outlook for exports.”
The Canadian dollar is slightly weaker after the statement from the Bank of Canada. If there be no price hike than that could be a good signal for the Canadian Dollar and USDCAD weakness.
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