14 Jan 2016
BoC will cut its overnight rate by 25bps to 0.25% - TDS
FXStreet (Delhi) – David Tulk, Research Analyst at TDS, expects that the Bank of Canada will cut its overnight rate by 25bps to 0.25% at next week's interest rate decision.
Key Quotes
“This out of consensus forecast is based on the hit to the economy from the renewed push lower in commodity prices and continued disappointment from other sources of growth.
The decision remains an exceptionally close call. On one front, the economic uncertainty has risen enough to fully support a cut, and the additional insurance would be wise. On the other hand, the Bank may want to wait and see how the temporary factors weighing on late- 2015 growth evolve.”
Key Quotes
“This out of consensus forecast is based on the hit to the economy from the renewed push lower in commodity prices and continued disappointment from other sources of growth.
The decision remains an exceptionally close call. On one front, the economic uncertainty has risen enough to fully support a cut, and the additional insurance would be wise. On the other hand, the Bank may want to wait and see how the temporary factors weighing on late- 2015 growth evolve.”