BOC Minutes: Agreed taht any monetary policy easing would probably be gradual

• There were different views on how much more assurance was needed to be confident that inflation was on a sustainable path back to target
• Some members felt there was a risk of keeping policy more restrictive than needed
• Governing Council was split over when to cut rates

It’s interesting that they’re split as the market also appears to be 50/50 on cutting at the June meeting. Today’s softer reatil sales report probably helped tilt them to a cut but the meeting is still six weeks away with much more data to come.

More:

• Felt rapid population increase and coming decline in non-permanent residents complicated outlook for activity and inflation
• Was more confident that inflation would continue to ease even as growth picked up
• Still more concerned about upside risks to inflation but viewed both upside and downside as less acute

This article was written by Adam Button at www.forexlive.com.