9 Mar 2016
BoC rate decision in the limelight today - BBH
Research Team at BBH, suggests that the Bank of Canada is going to announce rate decision today.
Key Quotes
“While Canada's Q4 GDP was better than expected, the details were weak, and the Canadian dollar's strength (+8.3% since January 20 low) may not be helpful. The Bank of Canada is widely anticipated to be on hold, but the market is divided about the prospects for another "insurance" cut over the next year.
The government is expected to release it budget on March 22. Generally, the 0.5% surplus that had been anticipated is now likely to be a deficit of around the same magnitude. The fiscal uncertainty had hampered the outlook for monetary policy, but the impact is expected to be incorporated into the central bank's new forecasts at the April 13 policy meeting.”
Key Quotes
“While Canada's Q4 GDP was better than expected, the details were weak, and the Canadian dollar's strength (+8.3% since January 20 low) may not be helpful. The Bank of Canada is widely anticipated to be on hold, but the market is divided about the prospects for another "insurance" cut over the next year.
The government is expected to release it budget on March 22. Generally, the 0.5% surplus that had been anticipated is now likely to be a deficit of around the same magnitude. The fiscal uncertainty had hampered the outlook for monetary policy, but the impact is expected to be incorporated into the central bank's new forecasts at the April 13 policy meeting.”