Comments from BOC’s Poloz are mostly repeats from the central bank decision:
- He will disregard higher 2014 inflation
- Underlying inflation won’t hit 2% until 2016
- BOC has more hope for export recovery after detailed survey of non-energy export sectors
- Growing consensus that terminal top for interest rates is now lower
- Risk hinge critically on outlook for export sector
- We already have what looks like a soft landing emerging in housing market
- Sectors representing over half of total exports are poised to heat up
Some optimism from Poloz is pulling down USD/CAD slightly. Overall, he retains the slightly dovish bias and continues to emphasize exports.
