A quickie on RBC's latest 'Central Bank Watch' on the Bank of Canada and Reserve Bank of Australia
This may be of interest to AUD and CAD traders; good summaries of where we are at, where to next, and when
On the Bank of Canada:
- With a disappointing start to the year, Canada's Q1 GDP growth is tracking below the Bank of Canada's forecast for a second consecutive quarter.
- More trend-like growth shouldn't be unwelcome with the economy already at full capacity and wages and inflation trending higher.
- We still see scope for a Q2 rate hike, particularly if a positive NAFTA outcome is achieved.
RBA:
- Australia's economy continues to create jobs but the pace of hiring has slowed recently and isn't enough to absorb lingering labour market slack.
- Muted wage growth is likely to keep a lid on Australian inflation.
- Along with increasing concern about global trade and tightening financial conditions, that should keep the RBA on the sidelines this year.
