Overnight index swaps now imply a 65% chance that the Bank of Canada will respond to fears about the spread of the coronavirus by cutting interest rates next week. But cases of the virus in Canada are still limited to just 14, and the Bank is concerned about the consequences of looser policy for the housing market. While the virus may eventually force the Bank’s hand, for now we expect it to remain on the side lines.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services