But as inflation is running near its upper band, analysts have different expectations on when the BOC would start to hike again with some see that happening as early as September of this year, while others look for mid 2013 for such a move. Because of that, the BOC statement on Tuesday would be closely monitored for clues to measures how far the BOC would lift its tone against inflation. The following is a round-up of currency analysts' expectations of the statement:
BNP: We could see a less-dovish statement from the BOC..If this scenario comes to fruition, the CAD could receive a boost since the market is not pricing any hikes over the next 12 months.
ScotiaBank: We expect the tone to shift to a more hawkish stance, which is likely to see CAD outperform on the crosses over the next 24 hours.
BMO: It's going to be fairly balanced, with maybe a slight tilt towards 'Rates aren't to stay at this level forever, and it's not that long before we're going to get going
CIBC: We'll see be a replay of what we saw in 2011, where they spend the first half of the year warning of interest rate hikes, but then don't end up delivering them.
BBVA: No one cared about what the bank said two or three months ago. Now they do. We expect its language to be scrutinized.
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