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Commenting on Bank of Canada Governor Poloz’s recently-delivered remarks on the economy, “the Economic Progress Report from Governor Poloz had a downbeat tone, consistent with yesterday’s policy decision and press release,” noted TD Securities analysts.

Key quotes

“Poloz framed Wednesday’s decision as an exercise in risk management, noting that the downside risks from COVID-19 sufficiently outweighed the Bank’s concern over financial vulnerabilities.”

“Poloz also repeated that the Bank stands ready to act should conditions warrant further monetary stimulus and that it will coordinate with other G7 central banks and fiscal authorities. We continue to look for the Bank to cut rates by 25bps at the April meeting, with a final 25bp cut coming in June.”