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Analysts at TD Securities note that the Bank of Canada held the overnight rate at 1.75% in July and left forward-looking language mostly unchanged from May.

Key Quotes

“The overall tone of the statement was more cautious than anticipated, noting the negative impact of trade tensions and describing Q2 GDP strength as transitory.”

“Trade tensions are expected to weigh heavily on global GDP in 2019 and 2020, taking the shine off a modest upward revision to near-term Canadian growth.”

“With no imminent urgency to follow other central banks, this could magnify the CAD’s high yielding status within the G10.”