The Central Bank of Canada (BOC) is expected to cut its asset purchases again at a policy meeting to be held next week (July 14), according to a survey conducted by Reuters.
The BOC was the first central bank in the G7 to tighten policy by reducing its weekly asset purchase program in April.
Based on the growing outlook, it is further expected to reduce purchases again at the July session meeting, by C $ 1 to C $ 2 billion per week, according to economists conducting a survey with Reuters.
Further, analysts also predicted that the central bank would reduce its purchases to C $ 1 billion at the October meeting, and stop them by the end of 2021.
The current bond purchase rate implemented is C $ 3 billion.
Meanwhile, analysts also project that the Canadian export -driven economy will grow around 6.2% in 2021, after recording the most significant annual decline in the past year,
The reading of Canadian employment data tonight will be the main focus of investors who will surely be guided by the central bank in setting the direction of monetary policy next week.
At the time of writing, the Canadian dollar is trading lower against the U.S. dollar amid risky sentiment and rising safe-haven demand.
