Bank of America Global Research discusses its expectations for tomorrow's BoC policy meeting.
"We expect the Bank of Canada (BoC) to remain on hold on 9 June, waiting for the economy to get out of its current rough patch and for inflation to eventually subside. That is, we do not expect the Bank to change either its policy rate or its pace of bond purchases at this time," BofA notes.
"All else unchanged, we believe it will be difficult for this meeting to serve as a catalyst for further CAD strength, as turned out to be the case with the April meeting. With risks skewed toward a less-hawkish message, we see CAD idiosyncratic risks on the day as accordingly being tilted to the downside, as with CA yields," BofA adds.