According to analysts at Nordea Markets, suggests that for the BoC, in March, “the timing was uncertain on the next hike”, but it seems that the Poloz and BoC are about to throw in the towel.
Key Quotes
“We tend to think so (and so does the market). The unemployment trend has now reached policy-pause territory in Canada, and therefore the Philips curve apologists within BoC may be ready to at least signal 50/50 probability for the direction of the policy rate at the meeting later in April or maybe even highlight downside risks to the 50/50 view (remember RBNZ just recently).”
“House price developments also suggest that CAD is far from being the best in class amongst the commodity currencies. CAD has basically NEVER picked up (versus USD) with house price trends as worrisome as currently.”
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