Canadian Dollar (CAD) Price Action Set-Up on Bank of Canada Decision
2021-04-21 10:40:00
Justin McQueen,
Analyst
BoC Likely to Taper QE, Despite Recent Surge in Virus Cases
BoC Statement Also in Focus Where Growth is Expected to be Upgraded
OVERVIEW: As the Bank of Canada is expected to unanimously leave the overnight rate unchanged at 0.25%, the focus will be primarily on QE and the accompanying statement. In terms of the current pace of QE, this is largely expected to be tapered to C$3bln/week from the prior of C$ 4bln. However, in light of the recent surge in virus cases, prompting renewed lockdown measures, this has reduced the certainty that the BoC will go ahead and taper and thus increased the two-way risks to this meeting.