Analysts at TD Securities explained that Governor Poloz was coy on the outlook for a July rate hike in the text of his speech on central bank communications.
Key Quotes:
“Poloz noted that markets were correct in their interpretation of the May policy statement but denied it met the threshold of explicit forward guidance. Poloz also flagged steel and aluminum tariffs in the speech which lent a dovish tilt.”
“However, the Governor was more optimistic in his press conference where downplayed the volatility of recent data and noted that business investment has been “robust” despite NAFTA uncertainty as firms have learned to “get on with it.” Poloz also stated the Bank does not conduct policy on speculation, suggesting rhetoric alone is not enough to derail a July rate hike.”
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