25 May 2015
Soft Canadian GDP growth might trigger easing expectations – Nomura
FXStreet (Barcelona) - David Fritz, Research Analyst at Nomura, previews the key events and data releases in Canada in the week ahead, viewing that further easing expectations might gather some pace if the GDP data ahead prints a soft picture for the economy.
Key Quotes
“Canada will have its rate decision on Wednesday, where no change is expected. More interesting might be the GDP figures released on Friday. The Bank of Canada (BoC) has noted that it is satisfied with the current level of monetary policy given the economic performance, yet our Canadian economists have noted downside risks to this outlook. If the GDP figures released Friday (monthly for March and quarterly for Q1 – neither of which the BoC will have had prior to its rates decision) show sluggish growth, then this could impact the expectations for further easing.”
Key Quotes
“Canada will have its rate decision on Wednesday, where no change is expected. More interesting might be the GDP figures released on Friday. The Bank of Canada (BoC) has noted that it is satisfied with the current level of monetary policy given the economic performance, yet our Canadian economists have noted downside risks to this outlook. If the GDP figures released Friday (monthly for March and quarterly for Q1 – neither of which the BoC will have had prior to its rates decision) show sluggish growth, then this could impact the expectations for further easing.”