13 Jul 2015
BoC can cut by 25 bps again - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained the grounds for another possible cut from the BoC.
Key Quotes:
"A notable underperformance of the Canadian economy during the first half of the year, combined with a slow transition to export-led growth and mounting global risks, offers the Bank of Canada grounds for another 25 basis points cut on Wednesday."
"Canada’s trade deficit widened to $3.3B in May from $3.0B in April. Exports fell by 0.6%, while imports advanced 0.2%. Net exports are now expected to act as a drag on economic growth in Q2."
"Friday’s mixed June payrolls report lifts confidence that mild economic contraction in the first half of the year won’t spill into the second half of 2015."
Key Quotes:
"A notable underperformance of the Canadian economy during the first half of the year, combined with a slow transition to export-led growth and mounting global risks, offers the Bank of Canada grounds for another 25 basis points cut on Wednesday."
"Canada’s trade deficit widened to $3.3B in May from $3.0B in April. Exports fell by 0.6%, while imports advanced 0.2%. Net exports are now expected to act as a drag on economic growth in Q2."
"Friday’s mixed June payrolls report lifts confidence that mild economic contraction in the first half of the year won’t spill into the second half of 2015."