The Bank of Canada will publish a rate statement and update on the interest rate on Wednesday, at 17:00 MT time.
Bank of Canada: a moment of truth
The Bank of Canada is due to deliver its interest rate decision and monetary policy report at 17:00 MT time on September 5. The rate announcement is a crucial factor for the CAD exchange rate, so traders pay special attention to the BOC meetings.
Canada’s inflation rose to 3% for the first time since 2011 in July. This unexpected increase puts pressure on the Bank of Canada to accelerate interest-rate hikes. Canadian central bank has already raised interest rates four times since last year to cool the economy. The market expects the BOC to increase the Overnight Rate by October. This won’t necessarily happen in September. Yet, the meeting will still be very important and lead to big swings in USD/CAD and other pairs containing the Canadian currency.
• If the Bank of Canada raises the Overnight Rate, the CAD will rise.
• If the Bank of Canada doesn’t raise the Overnight Rate and gives negative comments, the CAD will fall.
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…