BoC: No change, but a shift in tone - ING

The Bank of Canada left its policy rate unchanged at 1.75% as widely expected, but analysts at ING believe that there are clear hints of nervousness in the accompanying statement.

Key quotes

"It highlights the weakening global outlook with an acknowledgment that Canada has not been immune to these developments.”

"The statement goes on to say Canada’s growth is expected to slow in the second half of this year to a rate below its potential, with business investment and exports expected to “contract” before recovering in 2020 and 2021."

"In a clear shift from the September statement, the BoC states that the Bank will be monitoring the extent to which the global slowdown spreads beyond manufacturing and investment when assessing the outlook for monetary policy."