BoC: Not Expected to Change Policy - BBH
Research Team at BBH, suggests that the Bank of Canada (BoC) meets this week, and is not expected to change policy.
“The stronger than expected March employment data reported before the weekend prompted some observers to rule out another rate cut, but the market had already come to this conclusion.
In fact, the Canadian dollar's rally since multi-year lows (reached at the end of January) saw the implied yield of the June 2016 BA futures rise from 50 bp to 90 bp. The 40.6k increase in Canadian employment (four-times more the Bloomberg consensus) was insufficient to lift the implied yield of the June BA futures further. The Canadian dollar has appreciated by more than 12% on a trade-weighted basis since the end of January.
The Bank of Canada may revise up its GDP forecasts in light of recent economic data and the more stimulative budget. However, it may also caution the market against prematurely tightening financial conditions.”
(Market News Provided by FXstreet)