20 Jan 2016
BoC to keep rates unchanged today – Danske Bank
FXStreet (Delhi) – Research Team at Danske Bank, suggests that the Bank of Canada's (BoC) rate decision will attract attention today.
Key Quotes
“Following the latest oil price rout, markets are now pricing in more than a 50/50 chance of the BoC rate cut. We acknowledge that it is a close call, but we think the BoC will keep rates unchanged today as the weakening of the CAD should do a lot of the rebalancing work.
One possibility is that the BoC could re-introduce a form of forward guidance as governor Poloz's predecessor, Carney, pursued with some success in order to anchor rate expectations.”
Key Quotes
“Following the latest oil price rout, markets are now pricing in more than a 50/50 chance of the BoC rate cut. We acknowledge that it is a close call, but we think the BoC will keep rates unchanged today as the weakening of the CAD should do a lot of the rebalancing work.
One possibility is that the BoC could re-introduce a form of forward guidance as governor Poloz's predecessor, Carney, pursued with some success in order to anchor rate expectations.”