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23 Feb 2015
Further cuts expected by the BoC – TDS
FXStreet (Edinburgh) - Jacqui Douglas, Senior Global Strategist at TD Securities, sees the upcoming speech by Governor Poloz leaving the door open to further monetary easing.
Key Quotes
“Governor Poloz's speech ("Reinventing Central Banking") lends itself to a fuller discussion of monetary policy as an exercise in risk management versus a mechanistic modeldriven exercise”.
“Poloz should stop short of providing any insight into how much insurance the economy needs and instead will emphasize that the Bank will conduct a thorough analysis of how the risks have evolved since January”.
“We remain of the view that the Bank will follow through with another 25bps cut in March and while there is a risk that the overnight rate will be cut further from there, we will not know for sure until we can gauge the tone of the communique and receive more economic data”.
Key Quotes
“Governor Poloz's speech ("Reinventing Central Banking") lends itself to a fuller discussion of monetary policy as an exercise in risk management versus a mechanistic modeldriven exercise”.
“Poloz should stop short of providing any insight into how much insurance the economy needs and instead will emphasize that the Bank will conduct a thorough analysis of how the risks have evolved since January”.
“We remain of the view that the Bank will follow through with another 25bps cut in March and while there is a risk that the overnight rate will be cut further from there, we will not know for sure until we can gauge the tone of the communique and receive more economic data”.