Quotes from BofA Merrill Lynch:
- Once burned, twice shy is the new mantra of the BoC, and even with growth firming, “serial disappointment” throughout the recovery means the BoC will likely cautiously keep rates on hold at 1.00%, opting to hold off on a change in policy tone until the export improvement shows staying power.
- We expect the policy statement to acknowledge recent economic progress, but to emphasize that ample slack means no need to hit the policy brakes and raise rates. As Governor Poloz stated recently at Jackson Hole: “If the economy took off like a rocket, it would still have room to grow and the way things have been, there is a lot of room to grow.”
Published: 2014-08-29 19:51:00 UTC+00
Boc Will Likely Cautiously Keep Rates on Hold at 1.00%
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