- Analytics
- News and Tools
- Market News
- BoC: Unchanged rate, and a hawkish statement, should provide only limited support for Loonie – Commerzbank
BoC: Unchanged rate, and a hawkish statement, should provide only limited support for Loonie – Commerzbank
Economists at Commerzbank analyze how the Bank of Canada (BoC) Interest Rate Decision could impact the Loonie (CAD).
A surprise rate hike is likely to boost the CAD further
A vote for an unchanged 4.5% rate today, accompanied by a hawkish statement, should provide only limited support for the Loonie. It is true that the market should feel vindicated in its assessment that the BoC will continue its rate hike cycle in July. However, this seems to be already priced into the market. In addition, the market is likely to keep an eye on the upcoming central bank decisions by the Fed and the ECB next week and position itself rather cautiously.
On the other hand, a surprise rate hike as early as today is likely to boost the CAD further.
See – BoC Preview: Forecasts from six major banks, rates unchanged but hawkish bias
© 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
