Another hike by the BoC appears unlikely – TDS

In opinion of strategists at TD Securities, the Bank of Canada should refrain from making another move on rate at the next meeting.

Key Quotes

“If any hope for a third consecutive BoC rate hike managed to survive Governor Poloz’s speech last week, the disappointing print on July industry level GDP surely extinguished it”.

“Financial markets largely agree: the October meeting had been priced at nearly 50/50 this prior to Governor’s speech on September 27th, whereas it is now priced at just a one-in-four chance today”.

“Markets look to have stabilized following last week’s sharp rally— and barring a blockbuster upside surprise on the Business Outlook Survey market attention will shift to the final meeting of the year within the next few weeks”.