- Analytics
- News and Tools
- Market News
- Look for the BoC to cut rates by 25 bps tomorrow – TDS
Look for the BoC to cut rates by 25 bps tomorrow – TDS
FXStreet reports that Andrew Kelvin, Chief Canada Strategist at TD Securities (TDS) offered a brief preview of the upcoming Bank of Canada monetary policy decision on Wednesday, wherein the central bank is expected to cut interest rates by 25 bps.
“With other G7 central banks making unspecified promises of support, financial markets are now fully primed for widespread monetary stimulus. In Canada's case, markets have now fully priced in a rate cut for March, and with recent developments we believe that the cost of disappointing the market would be unpalatably high for the BoC. Although their preference may be to wait until they have a full forecast in hand to act, we now believe that the BoC will cut rates by 25 bps at tomorrow's meeting.”
“We don't expect to see much in the way of forward guidance given the volatile backdrop. Data dependence will remain the bank's lodestar going forward, as they will tie the March rate cut to expected reductions in global growth. We also expect they will cut by 25 bps in April, but the Bank won't want to signal anything until they have a better sense of COVID-19's growth implications and potential fiscal measures.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
