A sample of predictions from around the media on tomorrow’s Bank of Canada meeting:

• “The Bank of Canada will leave its interest rate unchanged at a record low of 0.5 percent when policy makers meet on April 21, according to the median forecast of 22 economists surveyed by Bloomberg.” (Bloomberg)
• “The consensus of analysts polled by Reuters is that the rate will be left unchanged, which would be the first time since July last year the bank has passed on the chance to cut.” (Vancouver Sun)
• A “further cut . . . would be futile on its own and would squeeze margins in the banking system.” — CIBC World Markets economist, Avery Shenfeld (CHTV)
• “Another 25 basis point cut is unlikely to be very helpful. Instead, the real focus is on the Monetary Policy Report, which will be delivered two days later.” (Seeking Alpha)

Despite the above, “markets are pricing in a 60% chance of a 25 basis point (1/4%) cut” according to Forex.com.

Last modified: April 29, 2014