📝Looking For 175Bps Of BoC Easing Into 2025: ING FX Strategy

While there is little prospect of any rate cut at the 6 March meeting and we doubt the BoC will be comfortable enough to loosen policy at the following meeting on 10 April, we do expect interest rate cuts to start coming through from the 5 June meeting onwards.

We look for 100bp of rate cuts in 2024 with a further 75bp in 2025.

Beyond the short-term, we are not as excited for the Canadian dollar as we are for the likes of Norway's krone, and the Australian and New Zealand dollars into a summer of monetary easing. First, because of our view of large easing by the BoC (unlike Norges Bank, and the Reserve Banks of Australia and New Zealand), and second because CAD shows some strong correlation with US data sentiment.- ING FX Strategy