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With many countries in the world seeing a renewed spike in covid cases, lockdowns and other restrictions are being reimposed.
The economic impact of that is likely to increase calls for central banks to step in with more easing. But most have already turned up their easing to the maximum.
Central banks would have been in a position to pivot towards a more long-term position if it hadn’t been for the increased case numbers.
More easing would likely support the stock market, on top of a desire to move to non-liquid investments. On the other hand, we might expect further weakness in the currency markets.
Let’s have a look at the three major central bank events coming up this week.
Canada to Carry On?
First up we have the interest rate decision from the BOC.
Covid cases in Canada have spiked past their “first wave” highs this month, prompting new restrictions. But that doesn’t seem to have changed the outlook for the economy all that much.
Recent data has show...
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