- Expected to keep rates on hold
- Chance for a cut if the want to weaken CAD or not be behind the curve of a Fed cut
- Could be some talk of oil price drivers
The Canadian Central Bank will meet later today to decide what the bank rate should be going forward.
Over the last few years, the CAD has been extremely strong, and this could add pressure for Canadian exporters and relate to dampened growth prospects forcing the bank’s hand to cut.
It is however expected that they shall remain flat on rates as growth, employment and other data points have been strong and have been strengthening.
The last time the bank focused on currency strength was back in 2016 where a strong CAD did weigh on the health of the nation.
Polos has held strong over the past decisions by not really budging as many others had been cutting.
It is likely, however, that they will cut once this year due to mounting corporate debt issues and the above mentioned, strong CAD.