FXStreet notes that 2020 is expected to be the weakest year for economic activity since at least 1982. Analysts at TD Securities look for the Bank of Canada (BoC) to cut rates to 0.25% before their next scheduled meeting in April.

“Media reports stating the more than 900,000 people filed for EI last week should make it clear that more easing is warranted. We look for the BoC to cut by 50 bps any day now.”

“We look for the BoC to announce $50-75bn worth of asset purchases at the April interest rate announcement.”

“We look for the cut to 0 bps in either April or June. A move to 10 bps is also within the realm of possibility.”

“We think that we need to see weakness extend into 2021 for the BoC to actually move rates into negative territory.”