Bank of Canada Survey: Policy rate forecast to decline by 50 bps by year-end

The Market Participants Survey for the fourth quarter of 2022 published by the Bank of Canada (BOC) showed on Monday that the median of responses for the policy rate by end-2023 stood at 4%, forecasting a 50 bps cut.

The median forecast for the real Gross Domestic Product (GDP) points to a fall of 0.4% in 2023 and an expansion of 2% in 2024.

Market reaction

USD/CAD retreated from the weekly high it set at 1.3475 earlier in the session after this report and was last seen trading at 1.3445, where it was up 0.35% on the day.