The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
Bank of Canada’s Meeting
|Last time the Bank of Canada raised the interest rate by 0.25 percentage point (from 1.0% to 1.25%). That’s why it is more likely that the bank will not increase the rate two times in a row. However, analysts expect two more rate hikes later this year. As central banks usually use their statements to explain monetary policy and economic conditions, the BOC may give some clues about the future rate hike. Remember that rate increases have a positive impact on domestic currency. As a result, any hints on higher rates in 2018 will drive the CAD up, while the absence of such comments will be negative for Canadian currency. The Bank of Canada will announce its monetary policy at 17:00 MT time on March 7.|
US stocks and oil slipped as Donald Trump threatened not to sign a long-awaited stimulus bill into law. The market sentiment had been already fragile, and Trump’s comments worsened it even more.
Canada's retail sales will be out on Friday at 15:30 MT time.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.