BoC: still have a 25bp hike pencilled in for the April 18th meeting - Rabobank

Analysts at Rabobank noted that the Bank of Canada left the policy rate unchanged at 1.25% as was widely expected.

Key Quotes:

"The Bank maintained a cautious tone while highlighting its data dependency.

We still have a 25bp hike pencilled in for the April 18^thmeeting and the recent bout of currency weakness has provided some support to this view.

That said our conviction has declined somewhat as domestic data are souring even faster than our (already pessimistic) forecast.

The market reaction was minimal but CAD did soften slightly while the 3mth OIS has dropped a couple of basis points."