Bloomberg News reports that the Bank of Canada is poised to follow the US Federal Reserve and cut interest rates in the face of rising coronavirus concerns. An interest rate cut this week would mark the first Bank of Canada action since October 2018, when it raised rates. Lead paragraphs All odds point to Governor Stephen Poloz lowering interest rates by at least 25 basis points on Wednesday after global coronavirus fears spooked markets and sent oil prices tumbling. Canada’s central bank has managed to hold rates steady for almost 16 months, resisting a global easing trend. Now, after the Fed made an emergency half-percentage point interest rate cut Tuesday morning, Poloz may have no choice but to join in. It’s a dramatic change from a month ago, when the most likely scenario was that Poloz would be able to keep the benchmark rate unchanged at 1.75 per cent for the last few meetings before his term ends in June. Markets are now pricing in 75 basis points of cuts by the time he steps down. Reasons for Holding The article notes that a strong labour market and near-target inflation have given Poloz some reason not to cut. Another reason to hold off until April is that the decision comes without the broader analysis included in a Monetary Policy Report. The federal government budget, expected later this month, may also provide some additional stimulus that monetary policy makers would want to incorporate into their decision making. “The rapid spread of COVID-19 globally, deterioration in financial conditions, steep drop in oil prices, not to mention continued transportation disruptions domestically are collectively too much for the Bank of Canada to ignore,” wrote National Bank Financial economist Warren Lovely in a note. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Pres Trump: Coronavirus spread isn’t necessarily inevitable, Fed rate still too high FX Street 3 years Bloomberg News reports that the Bank of Canada is poised to follow the US Federal Reserve and cut interest rates in the face of rising coronavirus concerns. An interest rate cut this week would mark the first Bank of Canada action since October 2018, when it raised rates. Lead paragraphs All odds point to Governor Stephen Poloz lowering interest rates by at least 25 basis points on Wednesday after global coronavirus fears spooked markets and sent oil prices tumbling. Canada’s central bank has managed to hold rates steady for almost 16 months, resisting a global easing trend. Now, after the Fed made… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.