BoC: Expected to deliver a 25 bp rate cut - BBH

FXStreet (Delhi) – Research Team at BBH, suggests that the Bank of Canada is widely expected to deliver a 25 bp rate cut today.

Key Quotes

“We are less convinced. Market conditions are not conducive and the Canadian dollar, while not in free fall, it depreciating quickly (5.4% this year already). If the Bank of Canada does move, Governor Poloz has indicated a willingness to consider QE.

Ahead of the meeting, the Canadian dollar is at new multi-year lows. The EIA oil and products inventory data will be released today and is expected to show a 2.75 mln barrel build in inventories. Oil prices are off nearly 2% today to new lows.”