Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that their view is that the evidence from the Canadian economy in recent months suggests that a gradual return to policy neutrality over the coming year is a reasonable base case forecast. Key Quotes “The Bank has estimated neutral policy rates to be between 2.5 and 3.5%. With rates at 1.25%, it has at least five 25bp hikes to get back to its neutrality estimate.” “As such, it will still see that, after a hike this week, that policy is significantly accommodative, and project above-trend economic growth.” “In the April MPR, the Bank assumed that there was some slack in the economy; but not much. It estimated that the output gap was between -0.75% and +0.25%.” “While the unemployment rate is around a record low, the Bank thought there was still a bit of slack, and noted that wage growth was still somewhat below what it would normally be if there were no-slack.” 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 Hackers stole $12.5M worth of Ethereum from Bancor; ETH/USD goes down in response FX Street 4 years Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that their view is that the evidence from the Canadian economy in recent months suggests that a gradual return to policy neutrality over the coming year is a reasonable base case forecast. Key Quotes "The Bank has estimated neutral policy rates to be between 2.5 and 3.5%. With rates at 1.25%, it has at least five 25bp hikes to get back to its neutrality estimate." "As such, it will still see that, after a hike this week, that policy is significantly accommodative, and project above-trend economic growth." "In… Top 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.
