“We expect the Bank of Canada to hold the overnight rate steady at 1.75% in January, which is already fully priced into markets,” notes TD Securities analysts.
Key quotes
“The Bank will have to acknowledge recent developments in the energy sector and financial markets, but will try to strike a balanced tone as the longer term forecast is largely intact (we expect just modest downward revisions to 2019 growth).”
“We look for Poloz to reiterate that the policy rate will need to move back to the neutral range – depending on the data, of course.”
“Markets will have hard time pricing in BoC hikes while positioning for Fed cuts, so any immediate move higher in rates is likely to be short-lived.”
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