Analysts at Nomura expect the Bank of Canada (BOC) to hike rates at Wednesday’s meeting.
Key Quotes
“In our view, the cyclical story in Canada continues to justify further BOC tightening in coming quarters – we expect two more hikes this year (July, October) and a further two in 2019.”
“However, the BOC is likely to acknowledge that downside tail risks are rising. Trade tensions with the US have escalated and NAFTA uncertainty is likely to linger well into 2019. There are also continued signs that the economy is starting to feel the pressure of rising interest rates.”
“We expect the BOC to deliver a somewhat dovish hike, highlighting mounting risks.”
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