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