October 2017 Bank of Canada monetary policy decision 25 October 2017
- Prior 1.0%
- Lowers Q3 growth forecast to 1.8% vs 2.0% prior
- Sees Q4 GDP at 2.5%
- Raises 2017 GDP to 3.1% vs 2.8%
- 2018 seen at 2.1% vs 2.0%
- 2019 1.5% vs 1.6% prior
- Outlook subject to substantial uncertainty about geopolitical developments and NAFTA
- Inflation has picked up in recent months. Will rise to 2.0% in H2 2018, later than forecast in July due to higher CAD
- Monetary and financial conditions are somewhat less stimulative
- GDP growth is expected to moderate to a more sustainable pace
- The recovery in business investment is becoming more entrenched
- Exports are anticipated to grow in line with foreign demand
USDCAD rockets to 1.2770
A kicker for GDP in Q3 and pushing out their inflation forecast has sent the market into a dovish frenzy.
The full report is here.