BOC: Forward guidance in spotlight amid likely status-quo – Scotiabank

Analysts at Scotiabank offer a sneak peek at what to expect from Wednesday’s Bank of Canada monetary policy decision due at 1400 GMT.

Key quotes

“Material changes to policy measures are not expected at this meeting but guidance may be important across several fronts.”

“The statement itself is likely to repeat the line about "As the economy moves from reopening to recuperation, it will continue to require extraordinary monetary policy support." This is the BoC's way of tamping down enthusiasm toward recovery readings.“

“Also watch for repeated forward rate guidance that included the line - The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved." 

Asset purchase guidance may be where some uncertainty lies.”

• USD/CAD Price Analysis: Eases from three-week top above 1.3200 ahead of BOC