Analysts at TD Securities point out that the BoC is universally expected to keep rates unchanged at 1.75% so focus is on the tone of the statement and press conference along with the MPR update.
Key Quotes
“Recent disruptions in the energy sector are the key development for the Bank, driving modest downgrades to 2019 growth and a more negative output gap. Still, even with the overnight rate unchanged 1.75%, look for Poloz to reiterate that rates will need to move back to the neutral range, lessening the dovish tone. Housing starts are also released and we forecast a slowing to an annualized 205k (mkt: 206k) in December.”
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