Credit Agricole CIB Research discusses its expectations for today's BoC January policy decision.
"The Bank of Canada (BoC) announces monetary policy today and should keep interest rates on hold. The BoC also releases its Monetary Policy Report (MPR) which includes updated economic projections.
There is scope for rates to move higher and our economists forecast further BoC hikes this year, which is in contrast to current market expectations which suggest no rate hikes this year.
For today, we suspect that the BoC would leave open the prospect for further, data-dependent rate increases which should support CAD over time," CACIB projects.