BoC unlikely to change bank rates next year

Last week the Bank of Canada retains its current level bank rate. The recovery in the United States, depreciated currency, and last monetary easing are supporting the economic adjustment in Canada. Monetary policy of the central bank will be guided by the behavior of oil and commodity prices, and fiscal stimulus of the new government. The Bank is expected to hold its policy rate unchanged next year also, says Barclays.

This week no major indicators to be released except new housing price index and housing starts for November.

"Without major local data we expect the loonies to follow the trend set by the dollar and oil prices this week. We continue to forecast a moderate nominal depreciation towards 1.40 in the year to come", argues Barclays.