4 Mar 2015
Barclays: BoC might ease rates today, 50bps of more cuts to come later – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares Barclays’ view regarding today’s BoC’s rate decision.
Key Quotes
“In Canada, we see risk that the BoC eases, or signals its intention to ease, more than what the market is currently expecting, posing downside risks to the CAD.”
“We believe that without additional monetary easing, BoC estimates suggest growth could undershoot its baseline by 1.4pp over the next two years. We see this as indicating its intention to cut rates to offset the disappointment, and estimate that at least 50bp of cuts will be needed over the next 3-6 months, significantly more than current market pricing of 25bp over the next 12 months.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“In Canada, we see risk that the BoC eases, or signals its intention to ease, more than what the market is currently expecting, posing downside risks to the CAD.”
“We believe that without additional monetary easing, BoC estimates suggest growth could undershoot its baseline by 1.4pp over the next two years. We see this as indicating its intention to cut rates to offset the disappointment, and estimate that at least 50bp of cuts will be needed over the next 3-6 months, significantly more than current market pricing of 25bp over the next 12 months.”
This content has been provided under specific arrangement with eFXnews.