BoC to remain on hold next week – TDS

Strategists at TD Securities expect the BoC to keep its monetary stance unchanged at its meeting on May 25th. 

Key Quotes

“The soft finish to Q1 and slowdown in non-energy exports will contribute to a more cautious communiqué, though there remains universal consensus that the Bank will leave rates on hold”.

“However, should the US economy fail to bounce back in Q2, weaker exports and the relative strength of the Canadian dollar will introduce the need for further fiscal stimulus and could open the door to monetary easing later in 2016”.