Check out these summary posts on the Bank of Canada for the moves:
- Four takeaways from the Bank of Canada decision
- Video: The BOC breaks ranks with global central banks and the loonie soars. What's next
The shift more hawkish from the Bank of Canada will be a significant point for Asian markets as they open today. You can expect more of this:
- The key question for markets is does the BoC Statement prove to be a watershed moment for central banks in which they revert back to outcomes-based guidance as the data improves and away from calendar-based guidance that was calibrated in the depths of the pandemic? Our eyes will be on US Fed Chair Powell in his press conference next week where no doubt he will be asked a question, as well as to the RBA on May 4 and the Statement on Monetary Policy where the unemployment rate track is running more than a year ahead of prior forecasts.
That commentary is via National Australia Bank this morning in Australia. AUD, NZD, GBP, EUR all rose alongside the CAD after the BoC statement (not to the same extent).
The European Central Bank meet today (Thursday 22 April 2021) b ut it will be too soon to expect a response from that bunch of laggards IMO.
