free counter

USD/CAD: BoC’s 75 bps hike unlikely to impress the loonie Commerzbank

THE LENDER of Canada (BoC) is normally likely to hike its key rate by way of a further 75 bps. However, the loonie is unlikely to benefit from this type of staggering move, in the opinion of economists at Commerzbank.

BoC more likely to add another 75 bps

It’ll yet need to become clear if the BoCs plan of a soft landing will continue to work out and whether it’ll avoid the threat of a wage-price spiral. If inflation expectations consolidate at higher levels higher level hikes may possibly be asked to weaken price pressure which may make more pronounced effects on the economy much more likely.

An interest rate hike of the expected magnitude is unlikely to impress the loonie much today. Whether it’ll be in a position to benefit at the very least short-term depends upon how hawkish the statement appears to the marketplace and whether it includes signals for further rate steps.

SeeBoCPreview: Forecasts from eight major banks, hiking rates again

Info on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled with this page are for informational purposes only and really should not at all run into as a recommendation to get or sell in these assets. You need to do your personal thorough research prior to making any investment decisions. FXStreet will not at all guarantee that information is clear of mistakes, errors, or material misstatements. In addition, it will not guarantee that information is of a timely nature. Buying Open Markets involves a lot of risk, like the lack of all or perhaps a part of your investment, along with emotional distress. All risks, losses and costs connected with investing, including total lack of principal, are your responsibility. The views and opinions expressed in this post are those of the authors , nor necessarily reflect the state policy or position of FXStreet nor its advertisers. The writer will never be held accountable for information that’s found at the finish of links posted with this page.

Or even otherwise explicitly mentioned in your body of this article, during writing, the writer does not have any position in virtually any stock mentioned in this post and no method of trading with any business mentioned. The writer have not received compensation for writing this short article, apart from from FXStreet.

FXStreet and the writer usually do not provide personalized recommendations. The writer makes no representations regarding the accuracy, completeness, or suitability of the information. FXStreet and the writer will never be responsible for any errors, omissions or any losses, injuries or damages due to this information and its own display or use. Errors and omissions excepted.

The writer and FXStreet aren’t registered investment advisors and nothing in this post will be investment advice.

Read More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker