Bank of America Merrill Lynch FX Strategy Research expects the BoC to remain on hold on 25 October as it waits for the impact of its recent hikes on the economy.
"We expect a dovish statement following recent economic deceleration. We expect BoC to upgrade its potential growth estimate. We expect the BoC to resume its hiking cycle on 2018, with three hikes to put the overnight rate at 1.75% by end-2018," BofAML adds.
CAD: continuing to follow BOC and rates
"Interest rates continue to be the current crucial driver in both directions for the Canadian dollar. We saw the most recent test of this after the September inflation numbers when USD-CAD bounced higher.
In this context, we continue to keep our relatively agnostic forecast of 1.30 through the end of next year," BofAML projects.
Comments
Post a Comment