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MNI BOC Preview - September 2021: Steady Ahead Snap Election

MNI BOC Preview - September 2021: Steady Ahead Snap Election

MNI BOC Preview - September 2021: Steady Ahead Snap Election

The Bank of Canada will likely try to avoid creating any political talking points when it makes it's latest policy announcement this Wednesday, less than two weeks ahead of the snap federal election on September 20.

PM Justin Trudeau called the snap election last month on August 15 -- two years ahead of time -- in order to bolster support for his handling of Canada's Covid response.

Consensus: holding rates and forward guidance steady: no surprises, no tapering with asset purchases steady at C$2B pre week, but is expected to reiterate uncertainty regarding economic outlook following the unwelcome drop in Q2 GDP (-1.1% vs. +2.0% est) -- likely a result of the April-May Covid lock-down restrictions.

Tiff Macklem, Governor of the Bank of Canada, will hold a videoconference on Thursday at approximately 1200ET to present the the Bank's Economic Progress Report: QE and the reinvestment phase.

Next month's interest rate announcement on October 27 will include the Banks quarterly Monetary Policy Report (MPR).

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MNI Bank of Canada September 2021 Preview.pdf

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