The Bank of Canada convenes to decide on its monetary policy as the Canadian dollar weakens. What should we expect from Poloz and his team?
Here is their view, courtesy of eFXnews:
We do not anticipate that the BoC policy announcement will have a significant impact on the CAD.
The next Monetary Policy Report is not due until April and the economy has generally evolved in line with the projections released in January. Labour markets have been very strong but it looks as though they are overstating the underlying strength in the economy since consumers turned a bit more cautious over the last two months of the year.
Overall we see little sustained impact on the CAD from domestic developments and expect the currency to instead be driven by US rates and the global risk backdrop.
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