The consensus call for the Bank of Canada decisions at the top of the hour is that policymakers will keep the status quo but there is some speculation they could remove their hawkish bias after the recent deterioration in economic data.
The key line is near the end of the statement:
The considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required.
The main risk is that Carney shifts into neutral. If they do, look for USD/CAD to break out to the upside — to 1.0300 from 1.0260 currently.
If the current wording is retained, a knee jerk reaction to 1.0230 is the best bet.
The statement will be published on the BOC website and is followed by a press conference from Carney at 1115 ET.
