Quotes from TD Economics:
- Following the surprise January interest rate cut, markets have been closely monitoring Bank of Canada communications. Today's decision to maintain the overnight rate at 0.75% is consistent with Governor Poloz's statement that the January cut bought the Bank some time to see how the economy responds.
- That said, the Bank of Canada's move towards a risk-management framework for setting monetary policy appears to have brought with it an increased dependence on data. Although Governor Poloz communicated today's decision reasonably clearly, prior communication, such as a speech by Senior Deputy Governor Carolyn Wilkins, had a much more dovish tone.
- We will continue to carefully monitor Bank communication for a change in stance.
