BoC: No change with rates at 0.50% - Rabobank

Christian Lawrence, Senior Market Strategist at Rabobank, suggests that they can repeat most of the opening paragraph from the 18th January preview with the only exception being a change of date, and this time around there are no analysts surveyed by Bloomberg forecasting a cut.

Key Quotes

“Indeed, we fully expect the Bank of Canada to leave the policy rate unchanged at 0.50% when they meet on Wednesday 1st March. In fact, the announcement is likely to be something of a non-event with almost nothing priced into the front-end. Our long held view has been, and remains, that the BoC is unlikely to move rates at all in 2017.”

“In terms of USD/CAD, we maintain the view that an upward break out of the 1.30-1.32 range is more likely than a downside break and we see a move up to 1.34 before 1.36 as likely to come to fruition in the coming month.”