Market Focus

On Wednesday, April 18, 2018, attention should be paid to the decision of the Bank of Canada on the interest rate. The decision on which interest rates to set depends mainly on the outlook for growth and inflation. Canada is a country of export and it is more promising for it to lower the interest rate to protect exporters. The policy of the Bank of Canada is aimed at keeping the inflation rate within 1-3%.

According to the forecast, the Bank of Canada will keep the discount rate at 1.25%. It is worth noting that the inflation rate in Canada rose to 2.2% in February, versus the January figure of 1.7%, against which there may be signals from the Bank of Canada about further tightening of monetary policy in the future. In the case of the release of data within the forecast, the Canadian will be under pressure, against which  the reduction of it within 50-60 points against competitors is expected. In case there are signals about a possible increase in the interest rate in the future, one should expect the Canadian’s growth within the limits of 40-50 points against competitors.

Alexander Sivtsov