The 100 bps of Fed cuts and the resumption of QE in the US will put focus back on the Bank of Canada. There is no indication that the BoC will feel pressure to immediately follow suit, in the opinion of economists at TD Securities.
Key quotes
“We continue to pencil in 50 bps of easing at the April 15th interest rate announcement.”
“Behaviour in financial markets will dictate the BoC’s next move, and if pressures continue to rapidly build the BoC could cut rates in very short order.”
“Every day is live for the BoC. In the very near-term, the BoC’s most important contribution to market functioning would be the successful implementation of the BA purchase facility, but we expect to see QE by the July meeting at latest.”
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