According to analysts at the Royal Bank of Canada, this week is all about the Bank of Canada and while no one expects a change in interest rates, hopes are Wednesday’s policy statement and Monetary Policy Report will provide clues into just how long the central bank might remain on the sidelines. Key Quotes “A run of soft economic data””including last week’s Business Outlook Survey””have given Governor Poloz and Co. plenty of cover to take a more dovish stance. The BoC barely clung to a tightening bias in its March statement, noting that accommodative policy was still warranted and that the timing of future rate hikes was increasingly uncertain.” “Recent comments from Governing Council have emphasized the first part of that guidance””that conditions call for the BoC’s policy rate to stay below its longer-run neutral range, currently pegged at 2.5-3.5%.” “We expect the BoC will make its shift to a neutral policy bias official by dropping any reference to future rate hikes. And to end the policy statement by again emphasizing its dependence on data, with a particular focus on oil markets, household spending, and global trade policy. Given recent disappointing home sales, we wouldn’t be surprised if developments in the Canadian housing market were added to that list. The shift to a neutral bias shouldn’t come as a surprise to investors who are already pricing in some chance of a rate cut by the end of the year.” “April’s MPR will include fresh economic projections. The BoC was slightly ahead of other forecasters in predicting slower global growth this year, so its global GDP forecast likely won’t change significantly.” “Domestically, a greater-than-expected slowdown over the winter should see the central bank cut its 2019 Canadian GDP forecast from 1.7%, likely closer to our 1.5% call. We think its forecast will continue to show a return to above-trend growth later this year as the drag from the energy and housing sectors eases.” “An eventual closing of the output gap may well be consistent with more neutral monetary policy over time. However, the combination of slower credit growth, limited inflationary pressure, and a dovish shift from other central banks leaves little urgency to raise interest rates further. Our forecast assumes the BoC will be on hold through 2020.” 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 Indonesia: A second term for Jokowi – ABN AMRO FX Street 4 years According to analysts at the Royal Bank of Canada, this week is all about the Bank of Canada and while no one expects a change in interest rates, hopes are Wednesday's policy statement and Monetary Policy Report will provide clues into just how long the central bank might remain on the sidelines. Key Quotes "A run of soft economic data"”including last week's Business Outlook Survey"”have given Governor Poloz and Co. plenty of cover to take a more dovish stance. The BoC barely clung to a tightening bias in its March statement, noting that accommodative policy was still warranted and that… 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.