The market should be on alert for an announcement on more stimulus (including potential BoC cuts), after Headline CPI softened to 2.2% y/y in February, according to analysts at TD Securities.
Key quotes
“Headline CPI was slightly stronger than expected at 2.2% y/y in February (TD/market: 2.1%) with prices 0.4% higher on the month (0.439% before rounding).”
“Core inflation softened once again with two of the Bank of Canada’s three preferred measures edging lower by 0.1pp. This took the average to 1.97% for the first sub 2% reading since August.”
“Morneau and Poloz are scheduled to speak at 16:15 GMT. Given what transpired last Friday, markets should be on alert for another 50bp cut from Poloz.”
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