Bank of Canada Rate Decision this morning at 10 AM
It’s an important day in Canada, as our central bank will hand down its key rate decision, and the NHL playoffs start this evening. Even if most analysts are not forecasting a key rate cut, another surprise announcement from Governor Poloz is not out of the question. Two meetings ago he succeeded in catching every pundit by surprise by lowering the key rate by 0.25%, from 1.0% to 0.75%.
U.S. Retail Sales figures released yesterday disappointed, by rising only by 0.9% (0.2% below forecasts). This negative result is leading market pundits to believe that the Fed will not raise its key rate in the coming months. Consequently, the U.S. Dollar Index (DXY) fell almost 1% in the last session.
China’s GDP numbers released last night grew by 7% for Q1 of 2015. Even if this result met the expectations of analysts, it is the worst figure posted since 2009.
In addition to the Bank of Canada’s key rate decision, we will also be monitoring U.S. Industrial Production figures and the Fed’s Beige Book. The ECB will announce its key rate decision this morning, and it no change is expected to its monetary policy.
