50 basis points from the BoC are coming – Commerzbank
|A large consensus is that the Bank of Canada (BoC) is expected to cut interest rates another time by 50 basis points today, from 3.75% to 3.25%, Commerzbank’s FX analyst Antje Praefcke notes.
CAD to have a hard time against the USD
“This is not only supported by the weak labor market, but also by recent weak growth. At the same time, the BoC is likely to look through the recent rise in inflation and focus instead on the disinflation successes of recent months. It will likely be important what the BoC says about next year.”
“The market expects further interest rate cuts, albeit at a slower pace. Given the weak growth, the risk of US tariffs on Canadian exports and the prospect of a further widening of the interest rate differential, the CAD will continue to have a hard time against the US dollar for the time being.”
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