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Mar 06 - 09:48 AM
CAD: If BoC Removes Reference To Raising Rates; CAD Likely To Weaken Materially - MUFG
First appeared on eFXplus on Mar 06 - 08:30 AM

MUFG Research discusses CAD outlook in light of today's BoC March policy decision. 

"The market is already expecting a more dovish decision today, with the policy statement likely to be scrutinised closely for an indication of softer future rate guidance," MUFG notes. 

"For the Canadian dollar to weaken materially on the back of today’s policy meeting, it is likely that the BoC would have to drop their tightening bias by removing the reference to raising rates over time towards neutral which could then encourage rate cut expectations. The Canadian rate market has already taken out around 75 basis points of rate hikes from 2019," MUFG adds. 

Source:
BTMU Research/Market Commentary

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