Goldman Sachs economists predict that the Bank of Canada (BoC) will boost rates for the final time on Wednesday, after which the central bank will likely suspend tightening.
” Our analysts anticipate the Bank of Canada to lower the rate of rises to 25 basis points this week and then stop, providing inflation remains in line with our predictions.”
“We will be especially interested in any potential adjustments in future guidance or remarks from Governor Macklem on the labor market’s strength.”
“Overall, we believe the risks point to a halt next week rather than a larger-than-expected raise, which means the USDCAD bears upside risk on the meeting. Until then, if the broad Dollar continues to fall, which appears to have few impediments in the short future, CAD will rise crosses are expected to suffer further weakening in CAD.”
