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Analysts at TD Securities are looking for the Bank of Canada to hold rates unchanged at 1.75% during this week’s meeting, where the policy statement should keep April’s messaging largely intact.

Key Quotes

“The domestic economic outlook has stabilized since the April BoC announcement, so we expect the Bank to describe the economy as evolving in line with expectations.”

“The forward looking language should be unchanged, with the Bank continuing to focus on household spending, oil markets, and global trade uncertainty. The apparent deterioration in the trading relationship between the US and China should feature prominently, but the Governor’s constructive comments on the labour market tilt the balance of risks towards a more optimistic statement.”