Regular BOC interest rate decisions disseminate information on the health of the Canadian economy and policy expectations. AUD/USD is one of the most liquid and widely traded currency pairs. In this article, we look at basics of trading it from both the fundamental and technical analysis perspectives.
Will the BOC reduce interest rates in Q4 2024?
A median of the participants forecast the BoC to reduce the key interest rate to 3.50% in the fourth quarter of 2024. BoC Governor Tiff Macklem expects inflation to be around 3% for next year and then gradually move back to the 2% target.
What is the BOC monetary policy framework?
The BOC monetary policy framework consists of two main components, the inflation-control target and the flexible exchange rate. Regular BOC interest rate decisions disseminate information on the health of the Canadian economy and policy expectations. AUD/USD is one of the most liquid and widely traded currency pairs.
Will the BOC hold the key rate at its current level?
This decision came in line with the market expectation. In its policy statement, the BoC reiterated that it expects to hold the key rate at its current level, conditional on the economy developing broadly in line with its forecasts.
