Citi discusses its expectations for today's BoC policy decision.
"Citi Economics and consensus expect no change at 0.25%. The pace of QE purchases should remain at CAD3bn per week after the reduction at the April meeting. The statement will likely maintain a sense of optimism about the resilience of economic activity, even despite a slightly softer than expected increase in Q1 GDP," Citi notes.
"With the BoC’s hawkishness looking less unique, and a divergence in valuation gaps, we see scope for CAD underperformance against NZD," Citi adds.