21 Jan 2015
BoC to revise down growth and inflation - Scotia Bank
FXStreet (Bali) - The Scotia Bank FX Team expects the Bank of Canada's forecasts for both growth and inflation to be revised lower when they publish their latest monetary policy statement later today, which will also include a press conference by Governor Poloz.
Key Quotes
"For CAD traders it is Wednesday’s BoC meeng that is the upcoming focus, where the central bank will release its interest rate decision and statement, the MPR, which includes forecasts updates and a press conference by Governor Poloz."
"The key pieces will revolve around how the BoC sees the impact of oil prices on the Canadian economy and monetary policy. The market is already well posioned for a more dovish tone; with the OIS market pricing in a 25% chance of an interest rate cut in the next year. The forecasts are likely to be revised lower for both growth and inflaon; but the market will be looking closely for details on how the fall in oil prices are being incorporated into the BoC models."
Key Quotes
"For CAD traders it is Wednesday’s BoC meeng that is the upcoming focus, where the central bank will release its interest rate decision and statement, the MPR, which includes forecasts updates and a press conference by Governor Poloz."
"The key pieces will revolve around how the BoC sees the impact of oil prices on the Canadian economy and monetary policy. The market is already well posioned for a more dovish tone; with the OIS market pricing in a 25% chance of an interest rate cut in the next year. The forecasts are likely to be revised lower for both growth and inflaon; but the market will be looking closely for details on how the fall in oil prices are being incorporated into the BoC models."