Previewing tomorrow’s BoC meeting, “We expect the Bank of Canada to hike rates by 25 bps on Wednesday,” TD Securities analysts said and added: “Recent economic data has been upbeat on balance and downside risks from US trade policy have diminished since July. This should allow the statement to sound upbeat.”
Key quotes
“Crucially though, forward looking language should remain similar to July and emphasize a gradual and data dependent tightening path.”
“Markets: Rates have fully incorporated a gradually tightening path, so any deviation from that script will cause significant dislocations in CAD fixed income. The same is true for FX; HFFV continues to point to modest upside just shy of 1.32 but a BoC surprise will put the 1.28/1.32 range to the test.”
Share
