No more rate cuts at the Bank of Canada – ING

By FXStreet FXStreet (Córdoba) – Today the Bank of Canada (BoC) kept the overnight rate unchanged at 0.5%. James Knightley, Senior Economist at ING, explains that they don’t expect more rate cuts.

Key quotes:

“The tone of the statement suggests that the BoC are pretty happy with how things are going since the July rate cut – “dynamics of GDP growth in Canada outlined in July remain intact” and the policy stimulus already implemented is still “working its way through” the system.”

“With the US economy looking in decent shape and the stimulative effects of lower interest rates and a weaker currency still to be fully felt we don’t expect any further rate cuts. We are currently forecasting the next move to be a rate hike in 2H16.”
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Source:: FX Street