The Bank of Canada will release Monday at 1:30 p.m. ET the Summary of Deliberations to the discussions leading up to the 50bps cut on Dec. 11, noted Scotiabank.
The bank said it doesn't really get much out of these partly because they're not real minutes, but it's possible Scotiabank may hear more discussion around the altered bias and uncertainties going forward and more breadth of views.
Despite the 50bps cut, market borrowing costs moved up as bets on future rate cuts were trimmed a touch, recalled the bank.
Markets hinged on the changed final paragraph of the statement that said they "will be evaluating the need for further reductions in the policy rate" versus previously saying "we expect to reduce the policy rate further."
Governor Tiff Macklem then said in his presser that "we'll be taking a more gradual approach. That means more gradual than 50bps at the last two meetings. That's a pretty wide zone. That's deliberate." Maybe investors will see more discussion around how wide, pointed out Scotiabank.
Macklem also hinted at possibly being at the neutral rate with a 3.25% overnight rate when he said "monetary policy no longer needs to be clearly in restrictive territory."
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