BoC poised for June easing according to Monex
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The Bank of Canada (BoC) signals a dovish stance, hinting at a June rate cut. The BoC's Monetary Policy Report shows a more dovish outlook with inflation expected to decrease to 2.8% in Q1 and to 2.2% by Q4 2024. The potential output growth for 2024 suggests the economy can grow without fueling inflation. There is caution about the demand outlook and core inflation's slow pace, suggesting a quicker return to the inflation target. Market expectations have reduced anticipated BoC rate cuts from three to two and a half for the year. Expected BoC rate cuts in contrast to a more inflationary US might widen USDCAD swap rates, supporting a climb to the 1.38-1.40 range in Q2. The Fed's policy path and Canada's lower recession risk may prevent the exchange rate from exceeding 1.40. The article also mentions other news unrelated to the main topic.

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https://www.forexlive.com/news/boc-poised-for-june-easing-according-to-monex-20240411/