4 September 2018

In his opinion, while the second quarter did show certain signs improvement, it’s not enough to offset the weak exports and related capital spending. In addition to it, the inflation rate remains within the Bank’s target limits.

As a result, he predicts no changes this time, but in case NAFTA issue is solved, the rate increase will be near.

TD Economics also expect Poloz to keep the rate unchanged and show a positive tone.

“Although the central bank will definitely keep underlining its path of gradual normalization, depending strongly on the data releases, we believe the BoC will be encouraged by economic data of the previous six weeks. The real estate market has approached stability, while Poloz has repeated that tariffs will be included into the forecasts only after their implementation”, – the TD bank says.