Adam highlighted the last paragraph as being important for gaining an overall feel for which way the BOC is swaying and it’s pretty much a copy of last month.
In sum, the Bank continues to see a gradual strengthening in the fundamental drivers of growth and inflation in Canada. This view hinges critically on the projected upturn in exports and investment. With underlying inflation expected to remain below target for some time, the downside risks to inflation remain important. At the same time, the risks associated with household imbalances remain elevated. The Bank judges that the balance of these risks remains within the zone for which the current stance of monetary policy is appropriate and therefore has decided to maintain the target for the overnight rate at 1 per cent. The timing and direction of the next change to the policy rate will depend on how new information influences the balance of risks.
The only thing to stick out is the final line which is basically putting us on data watch.
They make mention of the lower currency helping exports and expect inflation to stay low due to economic slack and heightened retail competition. They see temporary inflationary factors from higher consumer energy prices and the lower canadian dollar which will push it towards the 2% target over the next few quarters, as Adam has highlighted, that’s a change in stance on inflation expectations.
