BoC is universally expected to leave rates unchanged - TDS

The Bank of Canada will release its policy statement at 10:00 ET and is universally expected to leave rates unchanged, according to analysts at TDS.

Key Quotes

“We look for the policy statement to reveal a dovish lean in light of elevated uncertainty and the need for caution, but remind our readers that for Poloz, incoming data will determine the pace and timing of 2018 rate hikes. While the one page policy statement will contain limited information on the outlook, Deputy Governor Lane will deliver an Economic Progress Report on Thursday to address this topic.”

“On the data front, we expect the international merchandise trade deficit to narrow to $3.0bn in January (market: -$2.5bn) on stronger exports, partially offset by rising imports. Q4 labour productivity will also be released and the market consensus is for a 0.1% q/q increase.”