Canada
In terms of interest rate bets, markets are now roughly neutral on whether the Fed or Bank of Canada move the most in the next 12 months. BCA Research’s Foreign Exchange Strategy service’s bias is that it will be the BoC (with more cuts). Thus, a…
In this insight, we calibrate our investment views based on the latest Bank of Canada decision.
The Bank of Canada held its policy rate steady at 5% on Wednesday, in line with expectations. In his opening remarks following the announcement, Governor Tiff Macklem was cautiously dovish: “We don't want to leave monetary policy this restrictive longer…
Our reaction to this morning’s employment report and bond market moves.
It is too early for the RBA to begin cutting rates. Inflation remains above target, with core CPI currently standing at 3.4%, one of the highest numbers amongst major economies. The labor market is also fundamentally strong. Australia’s unemployment rate…
The Bank of Canada released its Business Outlook Survey for the first quarter of this year on Monday. While there are some early signs of stabilization, overall demand continues to be weak. The indicator for future sales growth remains well below its…
Canada’s CPI release for February shows price pressures continue to ebb with the various measures of inflation all falling below consensus estimates. In particular, headline inflation decelerated from 2.9% y/y to 2.8% y/y – its lowest since March 2021 and…
After briefly weakening in January, AUD/CAD has once again been moving higher over the past few weeks. Indeed, BCA’s Intermediate Term Technical Indicator is back to neutral from overbought territory, paving the way for this rebound. The question going…
The Bank of Canada (BoC) kept its policy rate steady at 5% for the sixth consecutive meeting yesterday, in line with expectations. The BoC, which has changed its communication policy to now provide a press conference after every meeting, reasserted the need…
Canada’s January CPI release shows price pressures cooling last month. Headline CPI eased to 2.9%y/y from 3.4%y/y in December, below expectations of 3.3%y/y. Furthermore, month-over-month inflation fell for the first time since May 2020. Headline CPI has…