Not looking for a change in policy at next week's BoC meeting – TD Securities
|Previewing next week's key macroeconomic events from Canada, TD Securities analysts noted that they do not expect the Bank of Canada to make any changes to its monetary policy.
Key quotes
"The Bank will have to acknowledge the outlook has weakened after Q2 GDP, but we do not expect it will move from its current timeline for the output gap to close in H2 2022. Recent strength in CPI also supports maintaining the status quo, even if the BoC reiterates that temporary factors are driving inflation."
"We look for the labour market recovery to slow with 50k jobs created in August, pulling the UE rate to 7.3%. Mobility indicators only saw minor improvement without any catalyst from relaxed social distancing measures. Details should prove slightly more upbeat; we expect full-time employment to lead job growth which should translate into a solid increase in total hours worked."
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