Bank of Canada monetary policy decision on Wednesday - preview

Author: Eamonn Sheridan | Category: Central Banks

The BoC announcement is on 10 July, due at 1400GMT. 

  • near unanimous expectations are for the cash rate on hold at 1.75%
I posted an earlier preview here:
And another here, which looks at how it will impact CAD:
While on the subject of the CAD
Some preview comments, and a handy infographic summary, via ING (n brief):
All signs point to no change in monetary policy
  • the BoC's repeated intention to keep policy "accommodative" should be read as "neutral"
We've looked at those factors and how they've changed since the 29 May meeting to identify the possible impact on the BoC's stance ahead of Wednesday's meeting:

The BoC announcement is on 10 July, due at 1400GMT. 
CAD's reaction may be muted
  • we see little scope for a dovish surprise at this BoC meeting - which suggests limited upside risk in USD/CAD - we are reluctant to expect another sharp appreciation of CAD just yet
  • We expect a somewhat muted reaction of USD/CAD to the BoC meeting, which may only be tentatively positive for CAD.

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