The expectation that the Bank of Canada (BoC) will hike its key rate by a further 50bp has largely been priced in by the market. Economists at Commerzbank expect the loonie to be unimpressed with the central bank decision.
Unlikely to be any surprises in the BoC statement
“The market is unlikely to focus on the rate decision but the statement today. However, there are unlikely to be any surprises on that front either.”
“Only the decision in July, once the next monetary policy report is due and the projections are being adjusted is likely to provide further insights as regards the rate outlook.”
“We expect no significant momentum for the rate expectations as a result of today’s BoC meeting, so that CAD exchange rates should be unimpressed.”
See – BoC Preview: Forecasts from six major banks, hawkish hike