The Bank of Canada (BoC) meets and is universally seen on hold. Thus, the central bank decision is unlikely to impact the Loonie, economists at Commerzbank report.

A non-event?

“It is unanimous consensus expectation that the BoC will keep its key rate unchanged at 4.5% today which seems to be largely priced in on the market too. That is what one could loosely describe as successful expectation management.”

“The market seems to be expecting further rate hikes of just over 25 bps as of the summer. If the statement confirms this impression, today’s rate meeting is not likely to provide much new momentum for the CAD exchange rates, rather it is going to hope that the next labour market report, due for publication on Friday, will provide that for CAD.”

See – BoC Preview: Forecasts from seven major banks, leaving rates on hold