The Bank of Canada left its key interest rate unchanged today at 1.25% as expected. James Smith, Economist at ING, points out that the BoC used a more optimistic language in its statement suggests tightening may not be far away.
Key Quotes:
“The Bank of Canada kept interest rates on hold,
“Time is running short for Nafta. The exemption on US steel and
“We still think that a deal can be reached, particularly given the time pressures on all three fronts to achieve a quick “win-win-win” outcome. Assuming this is the case and activity data continues to perform better, we still expect the Bank of Canada to hike twice in the second half of the year, potentially starting in July.”