IronFX, What to expect from BoC's Interest Rate Decision on Wednesday, the 24th of October 2018
Heads up for the BoC interest rate decision.
This article is originally referred from IronFX News.
The BoC is expected to announce its interest rate decision rate tomorrow, at 14:00 (GMT).
BoC is expected to hike rates by 25 basis points, hiking interest rates from current +1.50% to +1.75%.
Market is currently pricing in the probability for the bank to hike rates at 92.47%, as implied by CAD OIS.
The accelerating GDP growth rate as well as the stabilisation of NAFTA, provide arguments for a more hawkish view.
On the other hand, the slowdown of the CPI rate and concerns about household consumption could be advising caution.
If there is a dovish hike, we could see the Loonie weakening, while if hawkish comments prevail, the CAD could strengthen.
Original Source: IronFX News
