April BOC MPR Today
The Bank of Canada meets today for its April Monetary Policy review and is widely expected to keep rates on hold. Looking at recent data shows a mixed picture for the Canadian economy with continued positive momentum in job creation and retail sales as well as wholesale trade and monthly GDP readings, but the weakness is merchandise trade, core inflation, and wage growth which has been stalled at 1.9% for the past four months.
Recent Data Has Been Mixed
The BOC are likely to acknowledge the better data prints up to mid-Q1 but should also highlight the weakness in some readings and the downside risks for inflation aligned to persistent slack in the economy, as highlighted by weak wage growth and sub-target core inflation. Essentially, the statement is likely to strike a mildly dovish tone and will likely be little changed from March.
Post-Decision Press Conference Will Be Key
The key focus of today’s meeting will be on at the press conference held after the announcement of the policy decision. Referring back to comments made recently by Governor Poloz, before the blackout period, the BOC chief downplayed the stronger growth data and stated that Canada still has room to grow faster because of its cyclical position, emphasising that Canada and the US are at different stages of the business cycle.
Read more: https://www.orbex.com/blog/2017/04/trading-boc-two-pairs-watch/