5 Mar 2015
Bank of Canada turns neutral - Nomura
FXStreet (Bali) - Charles St-Arnaud, FX Strategist at Nomura, notes that no indication of further rate cuts by the Bank of Canada were given at today's meeting.
Key Quotes
"Overall, today’s decision suggests that the BoC is comfortable with the current level of interest rates, and the tone of the communiqué suggests that the BoC is in no hurry to cut its policy rate again."
"While the neutral policy stance reduces the likelihood of further rate cuts, we still think another rate cut may be required later this year."
"However, the timing of this cut would depend on incoming data, especially the price of oil, non-energy exports, signs that the weakness is affecting regions and sectors not linked to oil production and changes in household indebtedness."
Key Quotes
"Overall, today’s decision suggests that the BoC is comfortable with the current level of interest rates, and the tone of the communiqué suggests that the BoC is in no hurry to cut its policy rate again."
"While the neutral policy stance reduces the likelihood of further rate cuts, we still think another rate cut may be required later this year."
"However, the timing of this cut would depend on incoming data, especially the price of oil, non-energy exports, signs that the weakness is affecting regions and sectors not linked to oil production and changes in household indebtedness."