BoC keeps overnight rates at +1%

Some Key points in the Bank of Canada’s one page policy statement:

 

  • “Considerable Monetary Policy Stimulus” with rates at record low.
  • Economic momentum has slowed
  • Predicts brief recession in Euro area.
  • Assumes Euro debt crisis to be contained.
  • Cuts Canadian GDP to +2.1% in 2011, +1.9% in 2012 and ups 2013 to +2.9%
  • Inflation outlook roughly balanced.
  • Net exports a source of weakness, a stronger currency partially to blame.
  • Sees growth in China, other emerging markets, moderate to more sustainable pace.

     

    The BoC more comprehensive Monetary Policy Reports is delivered on Wednesday 26 October.

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    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell