The BOC rate statement will be published at 17:00 MT time on March 4.
Instruments to trade: USD/CAD, CAD/JPY, CAD/CHF
The Bank of Canada bank releases the rate statement followed by the decision on the interest rate 8 times per year. While the interest rate may remain unchanged, the bank may provide its overview of the economic conditions and offer clues on the outcome of future decisions. At the previous meeting on January 22, the BOC kept its interest rate unchanged at 1.75%. The bank announced the risks remaining in the economy and noted that it will continue following them closely. The central bank’s Governor Stephen Poloz did not exclude the possibility of a rate cut if the weakness of the Canadian economy is more persistent. The Canadian dollar weakened greatly after his dovish comments. As coronavirus continues making markets uncertain, let’s see what Canada’s regulator tells us this time.
- If the BOC is hawkish, the CAD will get stronger;
- If the BOC is dovish, the BOC will get weaker.