Bank of Canada Watch Bank to trim asset purchases despite third wave The Bank of Canada is set to cut the pace of its asset purchases next week. While it will also upgrade its GDP forecasts, we expect it to make an offsetting change to its estimate of the economy’s... 14th April 2021 · 7 mins read
Bank of Canada Watch Bank to turn forward guidance up to eleven Although the economy has been stronger than expected, we doubt that the Bank of Canada is about to become more hawkish. Instead, we think the Bank will use its policy statement next week to double... 3rd March 2021 · 7 mins read
Bank of Canada Watch Bank to remain on hold as it upgrades its forecasts The Bank of Canada is set to upgrade its growth forecasts next week, despite the deterioration of the near-term outlook, so speculation that it might cut interest rates looks overdone. 13th January 2021 · 7 mins read
Bank of Canada Watch Latest restrictions unlikely to prompt further loosening The Bank of Canada’s forecasts already assumed a renewed hit to GDP from a further wave of COVID-19, so the latest restrictions have probably not altered its assessment of the outlook. We would... 2nd December 2020 · 7 mins read
Bank of Canada Watch Renewed restrictions add to downside risks The economy has recovered faster than the Bank of Canada expected, but downside risks from the second wave of COVID-19 are mounting. We expect the Bank to reiterate next week that there is little... 21st October 2020 · 6 mins read
Bank of Canada Watch Bank to remain cautious despite stronger run of data The economy is performing better than the Bank of Canada previously expected, but the outlook remains challenging. We expect the Bank to keep policy unchanged next week and anticipate another fairly... 23rd May 2019 · 1 min read
Bank of Canada Watch Policy on hold, but rate cuts coming The weakness of the recent business surveys suggests that the Bank of Canada will strike a dovish tone at its meeting next week. The Bank is unlikely to start talking about interest rate cuts just yet... 17th April 2019 · 1 min read
Bank of Canada Watch Bank to remain on the side-line Given the weakness of the latest economic data, the Bank of Canada is set to remain on the side-line next week. It will probably reiterate that further interest rate hikes will eventually be needed... 27th February 2019 · 1 min read
Bank of Canada Watch Little reason for Bank to cheer at start of New Year With the sudden slump in oil prices over the last three months likely to weigh heavily on economic growth, and fears of a global downturn building, we expect the Bank to keep rates unchanged and... 2nd January 2019 · 1 min read
Bank of Canada Watch Bank to present cautious message as oil prices slump We suspect that the Bank of Canada will deliver a more dovish message next week than investors seem to expect. 28th November 2018 · 1 min read
Bank of Canada Watch Bank to hike as trade uncertainty lifted The markets are convinced that the Bank of Canada will hike its overnight rate by another 25bp to 1.75% at next week’s policy meeting and it isn’t hard to see why. Economic growth has been solid this... 17th October 2018 · 1 min read
Bank of Canada Watch Bank on pause ahead of October rate rise Even if NAFTA negotiations are concluded successfully this week, the Bank of Canada is likely to wait until October before it raises interest rates. 29th August 2018 · 1 min read
Bank of Canada Watch Bank set to raise rates despite growing risks Despite a host of negative developments since the Bank of Canada signalled in May that an interest rate rise was imminent, policymakers still seem eager to raise rates. While we now expect the Bank to... 4th July 2018 · 1 min read
Bank of Canada Watch Bank to remain on the side lines Although first-quarter GDP growth appears to have been stronger than the Bank of Canada assumed back in April, we don’t expect it to signal another rate hike is imminent at next week’s policy meeting... 24th May 2018 · 1 min read
Bank of Canada Watch Housing woes to keep Bank on the side lines The Bank of Canada is unlikely to hike interest rates again at its Governing Council meeting next Wednesday. Even with the risk of NAFTA’s demise fading and core inflation picking up, there is now a... 12th April 2018 · 1 min read
Bank of Canada Watch Interest rate tightening cycle likely to be cut short The Bank of Canada will raise interest rates again this year, most likely at the April policy meeting. In contrast to the consensus, we don’t see a series of further rate hikes beyond this. NAFTA’s... 28th February 2018 · 1 min read
