“Retail sales fell by 0.1% in December to outperform expectations for a more significant decline. Gasoline prices had a disproportionate impact which left real retail sales up 0.2%,” TD Securities strategists Andrew Kelvin and Robert Both said assessing today’s retail sales report from Canada.
Key quotes
“This report will do little to change the narrative around BoC hikes – we are still tracking Q4 growth at 0.9% (BoC: 1.3%) and the Bank will still need confirmation of a rebound in business investment before moving off the sidelines.”
“Rates: Markets mostly looked past the better than expected retail sales gigures, and the pervading sense of pessimism around the Canadian economy is too entrenched to be revised away following one or two modest upside surprises.”
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