Wednesday we got a surprise rate cut from the Bank of Canada.
TD reckons that’s it, its not the start of rate cut cycle.
Not so fast, though, says Credit Suisse … they reckon the BOC will cut another 25bps to 0.50% before year-end:
- “The timing of the measure will be dependent on the tone of upcoming data, but given the front-loaded profile of the bank’s forecast of a dip in growth, we are inclined to expect the cut to take place at the next meeting or at the following one”
On the USD/CAD:
- Forecast at $1.25 and $1.35 in 3 and 12 months respectively (vs. prior were at $1.22 and $1.28)
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Meanwhile in USD/CAD today …
