More CAD - Morgan Stanley on the Bank of Canada

I posted earlier on the 100% of economists calling an unchanged rate decision from the BOC on May 29

• Bank of Canada meet May 29 - unanimous expectations of on hold rates (and likely for a long time)

A little more, this via a note from Morgan Stanley. The banks sees

• little impetus for policymakers to resume rate hikes over our forecast horizon

MS citing:

• sluggish growth
• lingering slack in the economy

as justifying leaving some policy accommodation in place

.

Further out:

• "If growth fails to show any convincing signs of a rebound in 2H19, we think the risks of rate cuts will increase, and given our sluggish outlook, we place a subjective 40% probability that the BoC will deliver at least one 25 basis point rate cut over the next 12 months."