Header Ads

Header ADS

Markets Expect The Bank Of Canada To Maintain All Monetary Policy On Wednesday

The Bank of Canada is facing a 30-year high inflation rate of 4.8% (December CPI), and the market is now concerned about whether the Bank of Canada will start its interest rate hike cycle. The current market estimates that the Bank of Canada has an 85% chance of raising interest rates by 25 basis points this week. The highlight of the market this week, of course, is the Federal Reserve's interest rate meeting. The results will be announced on Thursday at 3:00am local time. Keeping all monetary policy unchanged is to be expected. Market focus is on the Fed's view on the March rate hike. As U.S. inflation has climbed to a nearly 40-year high of 7%, the market is worried that the Federal Reserve may increase interest rate hikes, raising interest rates by half a percentage point in March. So this week the Fed's orientation is extremely important.
Powered by Blogger.