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Bank of Canada Decides on Monetary Policy; UK CPI Data in the Limelight as Well

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Today, the Bank of Canada decides on interest rates. No change in policy is anticipated, but we see the likelihood for the Bank to sound somewhat more upbeat compared to its last meeting. In the UK, after yesterday’s employment report, CPI data for March will keep pound traders busy.

Loonie Traders on the Edge of Their Seats Awaiting the BoC Decision

Today, the Bank of Canada gathers to decide on monetary policy and the forecast is for the Bank to keep interest rates untouched at 1.25%. At their latest meeting, policymakers decided to keep policy unchanged and appeared more concerned over trade than they were in January.

However, fears over the prospect of a global trade war have eased recently, while headlines suggested that there has been a significant progress in NAFTA talks. On top of that, the latest BoC Business Outlook showed that Canadian companies remained optimistic about future sales despite the latest uncertainty over trade.

As for the economic data, they have been mostly encouraging since the latest gathering. Both the headline and core inflation rates rose notably in February, while headline inflation is expected to have continued to accelerate in March. The labor market added more jobs than anticipated during the month of March, while the unemployment rate held steady at its four-decade low of 5.8%. On the flip side, GDP data showed that the Canadian economy shrank 0.1% mom in January, confounding expectations of a +0.1% growth.

Read the full financial markets daily report on JFD Research.

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Source: https://www.jfdbrokers.com/en/research-education/jfd-research/daily-market-report/6-daily-market-report/14104-bank-of-canada-decides-on-monetary-policy-uk-cpi-data-in-the-limelight-as-well.html
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