BoC is going to decide on interest rate next week again. It’s generally expected to keep the overnight rate unchanged at 1.75%. Indeed, according to a Reuters poll, all 40 economists surveyed expected so too. However, forecasters are split on the rate path for BoC ahead.
Probability of a rate cut by the end of 2019 stands at 23% only. Probability of a rate cut by end of 2020 stands at 40%. However, there are still some forecasts expected a rate cut. Around 11 of 33 respondents expect a hike by the end of next year. And 4 even expect two hikes.