BoC preview: on hold until 2017 H2 - Rabobank

Analysts at Rabobank offered a bit of background to the BoC.

Key Quotes:

"We, in line with the Bloomberg consensus, fully expect no-change to the 0.50% Canadian policy rate when the latest decision is announced at the Bank of Canada (BoC) meeting on Wednesday 25th May. Of the 24 analysts surveyed (including ourselves) by Bloomberg, 24 expect no-change and almost nothing is priced into front-end rates for this week’s meeting.

The Bank of Canada last altered the policy rate back in July of last year with a 25bp cut that followed the 25bp cut seen in January 2015; these two moves partly unwound the 75bp of tightening in 2010 which raised the policy rate off of the 0.25% historical low.

Looking forward, we expect the BoC to leave rates on hold at 0.50% until at least 2017 H2."