Subtle dovish shifts in the Bank of Canada’s thinking and a weak growth backdrop give us increasing confidence that inflation concerns will fade and the BoC will cut rates in 2Q. There may be room for a rebound in short-term CAD rates in the near term though, and USD/CAD could stabilise, but the loonie remains less attractive than the likes of NOK and AUD. Dovish hints point to cuts The Bank of Canada left monetary policy unchanged at today’s meeting. The target for the overnight rate remains at 5% and the Bank is continuing with quantitative tightening. The market has latched onto the mildly dovish shift in the ... (full story)