BOC Minutes: Governing Council considered waiting until July to cut rates

• Members recognized chance of inflation stalling but there was a consensus that indicators showed enough progress to warrant a cut
• Members agreed that future easing would likely be gradual, timing would depend on data
• Agreed to emphasize in communications that decisions would be taken one meeting at a time
• Some members were more focused on downside risks to finlatio ndue to weak economy
• Others put more weight on upside risks related to persistent wage growth and potential for housing market rebound
• Discussed many potential drivers that could affect exchange rate
• Discussed large number of households renewing mortgages at higher rates in 2025

The ‘gradual’ comment is an interesting one as it goes against market pricing of 64% for another cut in July. That said, the probabilities will swing with upcoming data, including retail sales on Friday and next week’s CPI and GDP reports.

USD/CAD was unmoved on this release and trades at 1.3713 with the US on holiday.

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