BoC to keep rates on hold - TDS

Analysts at TD Securities are looking for the BoC to keep rates on hold in September along with a universal consensus.

Key Quotes

“The statement is likely to maintain an upbeat tone and repeat that further tightening will be warranted, in addition to showing comfort with the evolution of data over the last six weeks, which should support market pricing for a rate hike in October.”

“While less noteworthy than the BoC, international merchandise trade for July will be released at 8:30 ET and provide an early update on Q3 growth dynamics. TD looks for the deficit to widen a touch to -$1.0bn on a pickup in import activity while exports will be hampered by a shutdown in the oil sands.”

“US: International trade for July is the lone economic release and the market consensus is for the deficit to widen to $50.0bn from $46.3bn on a deterioration in goods trade as foreshadowed by preliminary data.”