BoC likely to keep rates on hold, monetary statement to offer clues on economy

Bank of Canada (BoC) Policy Monetary Policy announcement and release of the Monetary Policy Report is scheduled on Wednesday, 19th October. The Canadian economy rebounded in the quarter, giving the BoC some space to hold policy steady on Wednesday. Canadian economic data and oil prices are holding up relatively well so the market is unlikely to price in more BoC easing soon.

"Dovish surprise from the Bank of Canada (BoC) meeting this week (Wednesday) is unlikely, not going dent the CAD sentiment" said Research Team at BNP Paribas.

As Oil trades around $50/bbl on news of the possible OPEC accord, markets will focus on how the Bank of Canada is seeing stabilization in the energy sector, whether or not there is a continued pickup in the non-commodity exports to emerging economies, and how they see growth in the rest of the economy.