Today at 9am EST, the Bank of Canada (BOC) will meet to discuss their interest rate decision.
Even though, no rate hike is expected, the tone of the BOC statement could trigger some volatility for the Canadian dollar.
Will the BOC be hawkish or dovish?
Yesterday, we saw CAD GDP number's beating expectations:
GDP m/m .3% actual vs. .2% forecast vs. -.1% previous
The central bank has kept interest rates at 1% since September of last year. According to economic numbers, the economy has been a mixed bag of positive growth with less consumer spending. Here are some highlights:
- lower retail sales
- 58.3k jobs created in April
- Inflation has increased
- IVEY PMI report showing manufacturing activity cooling significantly
- GDP better than expected
- SPX TSX composite healthy stock market
- Oil prices back above 100/ high commodity prices
Although a rate hike is not expected today, investors are now looking at the possibility of a quarter point hike in December.