Canada: One more rate cut early next year - ING

In the view of the ING Bank analysts, “domestically, the Canadian economy looks in good shape. However, trade tensions and concerns regarding the vuln  |  11/12/2019 04:15

In the view of the ING Bank analysts, “domestically, the Canadian economy looks in good shape. However, trade tensions and concerns regarding the vulnerability of the country to global demand and commodity prices mean we suspect the Bank of Canada will step in with one last rate cut in early 2020”.

Key Quotes:

“The Bank of Canada has been sounding relatively relaxed of late regarding the risks facing the economy. The press release from the December 4 policy meeting talked of “nascent evidence that the global economy is stabilizing”, with Canada’s growth likely to “edge higher over the next couple of years.”

Stuttering global demand and lingering trade uncertainty mean that Canadian business may become increasingly cautious on both domestic hiring and investment in early 2020.

The weakness in the jobs market may also translate into slower pay growth, softer consumer confidence and slower spending growth in the coming months – thereby raising a sense of nervousness over the outlook for the key “source of resilience” as described by the BoC.

Inflation, meanwhile, is broadly in line with the target and is not a constraint on BoC action and we feel they will step in and provide one more rate cut in early 2020.”

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com