Greg Gibbs, Analyst at Amplifying Global FX Capital, notes that the Bank of Canada removed from its statement “some monetary policy accommodation will still be needed”, suggesting to the market that a rate hike is back on the table for the next meeting in July. Key Quotes “The probability of a 25bp hike from 1.25% to 1.50% on 11-July rose from 53% to 77% after the BoC statement.” “The Bank reiterated that “higher interest rates will be warranted to keep inflation near target“, and added that it “will take a gradual approach to policy adjustments“.” “It appears to be gearing up for some further normalisation in interest rates in July at what might be regarded as a gradual pace, after pausing for two policy meetings.” “This would be the fourth hike in the current cycle, after back-to-back Jul & Sep hikes last year, and a third in January.” “The statement was much shorter and indicated that the outlook was on track with its April MPR forecasts, with core inflation “near 2 per cent, consistent with an economy operating close to potential.” “They continue to see growth running around 2%, modestly above potential.” “The statement continued to say it would be “guided by incoming data“ and “The Bank will continue to assess the economy’s sensitivity to interest rate movements and the evolution of economic capacity.” “It reiterated risks from “ongoing uncertainty about trade policies“, and noted, “stresses are developing in some emerging market economies.” But it seems that recent events have not yet knocked the BoC view off course.” “The statement helped CAD catch a bid, in-line with the broad rebound in commodity, EM, and European currencies.” 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 EUR/JPY loses some downside pressure – Commerzbank FX Street 5 years Greg Gibbs, Analyst at Amplifying Global FX Capital, notes that the Bank of Canada removed from its statement "some monetary policy accommodation will still be needed", suggesting to the market that a rate hike is back on the table for the next meeting in July. Key Quotes "The probability of a 25bp hike from 1.25% to 1.50% on 11-July rose from 53% to 77% after the BoC statement." "The Bank reiterated that "higher interest rates will be warranted to keep inflation near target", and added that it "will take a gradual approach to policy adjustments"." "It appears to be gearing… 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.