Highlights of the BOC decision on May 24, 2017
- All things considered, Governing Council judges that the current degree of monetary stimulus is appropriate at present
- Had previously said it "judges that the current stance of monetary policy is still appropriate"
- Inflation is broadly in line with the Bank's projection
- BOC's 3 measures of core inflation remain below two per cent
- Wage growth is still subdued
- Global economy continues to gain traction
- Uncertainties from April statement remain
- Recent economic data have been encouraging, including indicators of business investment.
- Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions
- Very strong growth in the first quarter will be followed by some moderation in the second quarter
- Full statement
There's no clearly written change of stance to point to but it's there between the lines. The BOC is optimistic throughout the statement and the bias here is towards hiking rates, rather than cutting them.
The initial reaction was down in USD/CAD and that's the right direction.
