BoC to leave the policy rate unchanged next week - Rabobank

Analysts at Rabobank are expecting the BoC to leave the policy rate unchanged at 1.75% on Wednesday, 24th April as unanimously expected by the 21 analysts surveyed by Bloomberg.

Key Quotes

“CAD OIS implies almost no chance of either a hike or a cut at this meeting and only around a 20% chance of a 25bp cut by the end of the year.”

“Although a more cautious tone was adopted at the last meeting, the door was left open for rate hikes. Rather than being dovish, we argue that the Bank has adopted a holding stance.”

“We maintain the view that the BoC will not be able to raise rates again this cycle and instead we see the Bank cutting rates in 2020 Q2.”

“This meeting will be accompanied by a new Monetary Policy Report (MPR) which we expect to reveal downward revisions to growth forecasts.”