Reuters calls bank of Canada decision

Clients who acted on Reuters prescient analysis would have made a lot of money on April 23. The Bank of Canada stunned markets on April 23 when they told investors they had no immediate plans to join the U.S., UK, Japanese and Swiss central banks in using quantitative easing to spur a slumping economy. But two days before the market-moving decision, Reuters argued investors should be prepared for just such an outcome. Combining solid reporting with a deep understanding of monetary policy and the subtle signals used by central bankers, the story convincingly argued there were strong clues that Governor Mark Carney was unlikely to embrace unconventional monetary policy anytime soon. It specifically noted changes to language in the statement that accompanied its April 21 rate cut, and suggested investors place their bets accordingly. Such bets would pay off handsomely two days later, when the central bank`s decision triggered a half-cent jump in the Canadian dollar and sent government and corporate bond prices tumbling. Competitors offered nothing to match.