Bank of Canada rate decision at the top of the hour | Forexlive

The Bank of Canada will announce their interest rate decision at the top of the hour. The current rate is at 3.75%. There are mixed feelings about whether they do 25 or 50 basis points.

Goldman Sachs expects 50 basis points:

• “At this week’s BoC meeting, our economists expect the Bank to deliver another SObp hike, but under-delivery remains a risk on two fronts. First, it is possible that the BoC sees enough justification to hike by 25bps only, given the moderation in sequential underlying inflation. Second, we think that the BoC is likely to pause soon and the statement or press conference may already signal this next week,” GS notes.
• “CAD has had a solid performance this year on the BoC’s aggressive hiking cycle but has underperformed the rest of G10 recently. This is mostly related to lower oil prices and lower yields (and a weaker USD on crosses). However, CAD on crosses remains our preferred expression in an environment of USD strength, which we expect to persist over the next 3 to 6 months,” GS adds.

The tilt in the market is more toward a 25 basis point hike, however. See Adam’s post here: