BoC seen on hold this week – TDS

Strategists at TD Securities expect the BoC to keep its monetary stance unchanged at this week’s meeting.

Key Quotes

“The Bank of Canada is universally expected to leave its overnight rate unchanged at 0.50%”.

“The accompanying forecasts in the MPR should reflect a more challenging growth narrative given the impact from the Alberta wildfires, slowdown in non-energy exports, and global headwinds from the EU Referendum which could come across as dovish”.

“But while these forces should translate to increased caution at the Bank, there is a risk Governor Poloz retains some semblance of optimism in his press conference, due to the transitory nature of the wildfire shock and the counterbalance from fiscal stimulus”.