BoC preview: Only a matter of time – Rabobank

Rabobank analysts are expecting the Bank of Canada to leave the policy rate unchanged at 1.75% on Wednesday, 4th September.

Key Quotes

“CAD OIS implies less than 10% chance of a cut.”

“We maintain the view that the Bank of Canada is reticent to cut rates but will be forced to as a result of external headwinds and a weak domestic backdrop when looking below the headline numbers which paint a somewhat misleadingly robust picture.”

“We now expect the BoC to begin its easing cycle with a 25bp cut in January before taking rates down to 0.50% by the end of 2020.”