FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI BoC Review, Apr'24: Door Open To A June Cut

Credit: Bank of Canada

EXECUTIVE SUMMARY

  • The BoC left its overnight policy rate at 5% but the broad suite of communications were dovish.
  • It has greater confidence that inflation will continue to come down gradually even as economic activity strengthens. Further, it is seeing what it needs to see, but just needs to see it for longer.
  • A June cut is “within the realm of possibilities”, tallying with the majority of analyst expectations.
  • However, stronger than expected US CPI inflation dominated market reaction on the day and has lowered odds of a first cut in June.
  • The less than 65bp of cuts priced for 2024 is at odds with some analysts looking for 100bp of cuts.
  • The potential for a greater decoupling in monetary policy between Canada the US is likely to be the main story over the next almost two months before the June 5 decision.
  • Next up, Tuesday’s important session with both Canadian CPI and the federal government Budget.

PLEASE FIND THE FULL REPORT HERE:

BOCReviewApr2024.pdf


HomepageCentral Bank ReviewBoC - ReviewCentral Bank ReportsMarkets Bank of Canada Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.