FXStreet – According to the unanimous opinion of analysts, the Bank of Canada (BoC) will leave its monetary policy next Wednesday again unchanged, said Thu Lan Nguyen, a Commerzbank expert.
The BoC had lowered its key interest rate in the Wake of the Oil price fall 2014/2015 to a record low of 0.50%. In the meantime, has recovered in the canadian economy, thanks to the expansionary monetary policy, and the last had adopted even faster than the BoC, which Calls for the first rate hikes has to be louder.
Nevertheless, the risks should be balanced for the growth Outlook from the perspective of the Central Bank. Although the domestic consumption is promising, but the exports prepare the BoC, in particular against the Background of a potential protectionist measures in the United States. This risk has recently increased, rather because the US government has introduced a penalty tariff on imports of wood from Canada.
In addition, the inflation rate has fallen in the last few months tend to be. This also applies to the various measurements of core inflation that the Central Bank is paying particular attention. We do not believe, therefore, that the BoC is already interest-rate hikes in view. We expect no earlier than mid-2018, with a first interest rate step.
** FXStreet News Editorial, FXStreet**