Bank of Canada likely to keep interest rates on hold in March

The Bank of Canada is set to meet tomorrow for its interest rate decision. According to a TD Economics, the Canadian central bank is likely to keep its interest rates on hold, leaving the focus on the forward looking language in the policy statement.

The Bank of Canada is expected to maintain that the outlook still warrants higher rates “over time” but note there is material risk that the poor fourth quarter GDP data will compel the central bank into conceding that they are done with rate hikes for the near future.

“Elsewhere, we look for the Bank to keep its focus on housing and global trade risks while acknowledging that the domestic outlook has grown cloudier since January”, added TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bearish at -90.4855, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 133.766 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex