Back
16 Apr 2014
BoC in no hurry to raise interest rates - ANZ
FXStreet (Bali) - Amber Rabinov, FX Strategist at ANZ Research, notes that subdued inflation in Canada leaves BoC in no hurry to raise rates.
Key Quotes
"The Bank of Canada (BoC) leaves policy rates unchanged at 1%, remaining concerned about the downside risks to already subdued inflation. The bank has not “shut the door” to further rate cuts."
"While energy prices and the weaker Canadian dollar have seen the BoC revise up its outlook for headline inflation, underlying inflation is forecast to remain below the bank’s 2% target until Q1 2016. The March CPI report is released tomorrow."
"There has been a tentative improvement in a number of measures of economic activity, and business sentiment has also nudged higher. But one swallow does not make a summer, and we would like to see more evidence that an economic recovery has become more established."
"Unless there is an unexpected acceleration underlying Canadian inflation, look for USD/CAD to be pressured higher as the BoC will likely lag the Fed in any policy tightening."
Key Quotes
"The Bank of Canada (BoC) leaves policy rates unchanged at 1%, remaining concerned about the downside risks to already subdued inflation. The bank has not “shut the door” to further rate cuts."
"While energy prices and the weaker Canadian dollar have seen the BoC revise up its outlook for headline inflation, underlying inflation is forecast to remain below the bank’s 2% target until Q1 2016. The March CPI report is released tomorrow."
"There has been a tentative improvement in a number of measures of economic activity, and business sentiment has also nudged higher. But one swallow does not make a summer, and we would like to see more evidence that an economic recovery has become more established."
"Unless there is an unexpected acceleration underlying Canadian inflation, look for USD/CAD to be pressured higher as the BoC will likely lag the Fed in any policy tightening."