Analysts at TD Securities are expecting the Bank of Canada to leave rates unchanged at 1.75% and declare the economic outlook is evolving as expected.
Key Quotes
“The forward-looking language should be unchanged, with a focus on household spending, oil markets, and global trade uncertainty.”
“The apparent deterioration in US/China relations should feature prominently, but the Governor’s constructive comments on the labour market tilt the balance of risks towards a more optimistic statement. We like positioning for higher 5-year rates and a flatter curve.”
“Prevailing ranges should hold in USDCAD and we prefer to fade the extremes rather than expect a breakout. Still, we think the BoC has dropped the bar low enough where the meeting will continue to reinforce highs near 1.3520.”