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8 Jan 2014
Flash: BoC likely to disappoint market over next two years - Societe Generale
FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale comments that the Bank of Canada (BoC) is likely to disappoint the market over the next two years and prove more dovish than expected.
Key Quotes
“While the market has priced a more trade-oriented BoC, it hasn’t priced an environment with very low core inflation, courtesy of an overpriced CAD and a subdued global demand environment.”
“Over a horizon of more than two years and as the global economy moves in the direction of closing its output gap, the BoC should prove more aggressive than is currently priced in.”
Key Quotes
“While the market has priced a more trade-oriented BoC, it hasn’t priced an environment with very low core inflation, courtesy of an overpriced CAD and a subdued global demand environment.”
“Over a horizon of more than two years and as the global economy moves in the direction of closing its output gap, the BoC should prove more aggressive than is currently priced in.”