Bank of Canada policy statement "was more dovish than expected"
The BoC monetary policy statement was on Wednesday. For summaries:
- CAD - Looking for the BoC decision? (amongst wall-to-wall Powell/Fed/FOMC reports) - Here you go!
- Anyone up for a racy video on the Bank of Canada July Monetary Policy Report?
RBC Economics with their take:
- policy statement was more dovish than expected
- BoC didn't move explicitly to an easing bias (unlike the Fed and ECB) but sounded more concerned about "persistent trade tensions" that are clouding the outlook
- still don't appear to be in any rush to lower rates alongside the Fed (Powell's comments this morning reinforced expectations for a July cut) but markets seem justified in thinking the BoC's next move is more likely to be down than up
- Concerns about trade tensions and slowing global growth received top billing in the statement, unlike in May when signs of a firming domestic economy were highlighted
- Inflation remains close to 2% (something the Fed and ECB can't claim) and is expected to be sustained at the BoC's target by the middle of next year as economic slack is absorbed