- Inflation is about the same as in January
- Responds ‘no’ to question about shutting the door to rate cuts
- “We remain neutral”
- Inflation hinges on export outlook
- We believe ingredients are present for exports but they have been present for awhile, we need to see it
- Natural gas prices expected to lift headline inflation
The reiteration of neutral while refraining talk of a more hawkish bias added a few pips to USD/CAD. Last at 1.1017.
More headlines:
- Contacts say it’s so competitive that it’s tough to pass through import price rises due to soft CAD
- I won’t comment on appropriate level of Canadian dollar in any way
- We’re trying to figure out what effect weather will have in Canada/US
- We think effect in US will be cutting 0.5 to 1.5 pp of Q1 growth
- Canada would be at lower end “because we’re used to bad weather”
