BoC likely to leave the policy rate unchanged - Rabobank

Analysts at Rabobank are expecting the BoC to leave the policy rate unchanged at 1.75% tomorrow as CAD OIS implies almost no chance of either a hike or a cut.

Key Quotes

“This marks a change to our previous call for a 25bp hike.”

“If the Fed moves in March (as is our base case) then there is still a chance we see one final 25bp hike from the Bank of Canada.”

“We would prefer being short USD/CAD and long short-dated OIS heading into this meeting as we still expect the BoC to be more hawkish than the market is currently positioned for despite our change in view.”