TD Securities analysis team is looking for the Bank of Canada to hold rates unchanged at 1.75% as disappointing Q4 GDP complicates what had originally looked like a placeholder meeting.
“This may challenge Pololz’s conviction on future rate hikes and while we expect the Bank to leave forward guidance unchanged for now, the poor GDP introduces a material risk that they will abandon the pretense of further tightening given their adherence to data-dependent monetary policy.”
“At 8:30 we will get international trade for December which was delayed by the US government shutdown. TD looks for the deficit to widen to $2.8bn from $2.1bn in November (market: -$2.1bn).”
“Ivey PMI (Feb) and labour productivity (Q4) will round out the data calendar.”