BOC’s Macklem: We’re putting more emphasis on risk when it comes to the next rate decision

Forex Short News

How do you say cutting rates without saying it? It sure sounds to me like he’s signaling a cut at the October 29 meeting. At present, market pricing is only at 68% for a cut, though one is fully priced in at the December meeting so that might not tee up a big CAD move.

  • I hope we can be a bit more forward-looking but there is a lot of uncertainty and we need to be humble about our forecasts
  • We expect growth to resume but we expect it to be be soft and probably a little below potential
  • Growth is not going to feel very good and it’s certainty not going to be enough close the output gap

Very dovish stuff.

This article was written by Adam Button at investinglive.com.