BoC Deliberations to Shed Light on Inflation Expectations and Trade Uncertainty

TD Securities strategists are closely watching the Bank of Canada's (BoC) Summary of Deliberations, expected to shed light on the July policy decision. The minutes will focus on how policymakers view inflation amid recent energy price moves and Consumer Price Index (CPI) forecast revisions.

The BoC removed language around new trade restrictions leading to potential rate cuts from its guidance in July, and TD Securities is looking for any fresh comments on trade uncertainty.

TD strategists expect the minutes to note that inflation expectations remain anchored, and higher energy prices have not yet spilled into core inflation measures. They also look for confirmation that this limited pass-through to core inflation remains intact.