BoC: Future decisions will be guided by incoming data - Westpac

According to Richard Franulovich, Research Analyst at Westpac, the BoC deliberately offered no forward policy bias noting that future decisions, “are not predetermined and will be guided by incoming data”.

Key Quotes

“But with global growth firming, energy prices broadly stable, Trudeau’s earlier stimulus still washing through the economy and confidence on the upswing, the overall thrust of the local Canadian data should point yet further toward a broadening and self-sustaining recovery. Another hike should be delivered before the year is out.”

“The 25 Oct BoC should reveal yet further upgrades to growth and an earlier closing of the output gap.”

“USD/CAD should break below 1.20 soon with yield support continuing to trend decisively in its favour.”