BoC and RBA in focus this week - BBH
The Reserve Bank of Australia and the Bank of Canada hold policy meetings on Tuesday and Wednesday respectively and neither is expected to change policy, according to research team of BBH.
“The RBA's economic assessment is known. The reasonable growth (Q3 GDP is reported the next day, probably 0.6%-0.7%) is blunted by the concerns about the household sector-weak wage growth, weak household consumption, high debt.”
“The Q3 rate hikes have coincided with a sharp slowing of the Canadian economy. Growth slowed to 1.7% at an annualized clip in Q3, down from a 4.3% pace in Q2, which was reported before the weekend. However, Canada also had an unexpectedly strong employment report, accompanied by an acceleration in wage growth (2.8% year-over-year average hourly wages), which spurred a nearly 1.7% rally in the Canadian dollar before the weekend, its largest single-day advance this year. While officials warn that they anticipate the economy will require less stimulus over time, implying a tightening bias, there is no hurry to act.”