3 Feb 2015
BoC and the likeliness of another rate cut in March – Westpac
FXStreet (Edinburgh) - Strategists at Westpac see the chance of anoher 25 bp rate cut by the BoC in its March meeting.
Key Quotes
“The case for a quick BoC follow up easing at their 4 March meeting continues to build – notably, local banks have only passed on 15bp of the 25 bp cut while Statscan revisions have slashed 2014 jobs growth by close to a 1/3”.
“Rates markets are pricing in a 60% chance of another 25bp rate in March so the odds, while already better, can certainly grow further”.
“A 400 point rally last week took price to within 200 points of our medium term target and significant resistance around 1.30 (2008/09 highs)”.
“Short term momentum has failed this week implying a period of consolidation in the next 1-2 weeks. Note the medium term uptrend remains in play”.
Key Quotes
“The case for a quick BoC follow up easing at their 4 March meeting continues to build – notably, local banks have only passed on 15bp of the 25 bp cut while Statscan revisions have slashed 2014 jobs growth by close to a 1/3”.
“Rates markets are pricing in a 60% chance of another 25bp rate in March so the odds, while already better, can certainly grow further”.
“A 400 point rally last week took price to within 200 points of our medium term target and significant resistance around 1.30 (2008/09 highs)”.
“Short term momentum has failed this week implying a period of consolidation in the next 1-2 weeks. Note the medium term uptrend remains in play”.