- Analytics
- News and Tools
- Market News
- USD/CAD: BoC's 75 bps hike unlikely to impress the loonie – Commerzbank
USD/CAD: BoC's 75 bps hike unlikely to impress the loonie – Commerzbank
The Bank of Canada (BoC) is generally expected to hike its key rate by a further 75 bps. However, the loonie is unlikely to profit from such a staggering move, in the opinion of economists at Commerzbank.
BoC likely to add another 75 bps
“It will yet have to become clear whether the BoC’s plan of a soft landing will work out and whether it will avoid the risk of a wage-price spiral. If inflation expectations consolidate at higher levels higher rate hikes would probably be required to weaken price pressure – which would make more pronounced effects on the economy more likely.”
“A rate hike of the expected magnitude is unlikely to impress the loonie much today. Whether it will be able to benefit at least short-term depends on how hawkish the statement seems to the market and whether it contains signals for further rate steps.”
See – BoC Preview: Forecasts from eight major banks, hiking rates again
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
