BOC to Hold Rates During a Week of Dovish Central Bank Chatter

  • Tuesday, May 28, 2019

Welcome to “The Cyborg Analyst” by Prattle. This report provides weekly, quantitative insights on G-10 currency central banks.

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In a relatively quiet week in global central banking, the lone policy meeting at the Bank of Canada is likely to result in a rate hold along with dovish remarks consistent with the bank’s recent trend. A speech by BOC Deputy Governor Wilkins later in the week could sound a bit more neutral, reinforcing the message that BOC policy is on hold for the time being. In a shortened holiday week, only two Fed policymakers are scheduled to speak. Vice Chair Clarida and NY Fed President Williams are both likely to bolster the Fed’s current wait-and-see message by sounding slightly dovish. BOJ Governor Kuroda is likely to strike a similarly dovish tone in his two speeches this week, echoing recent concerns about spillover effects of the trade war between the U.S. and China. Finally, the RBNZ Financial Stability Report will almost certainly show underlying weakness in the Kiwi economy, thereby explaining the rate cut earlier this month.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s Central Bank Analytics. 

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