BoC Minutes to Shed Light on Inflation Expectations

TD Securities strategists are expecting the Bank of Canada's (BoC) Summary of Deliberations to provide insight into its July policy decision. The focus will be on how policymakers view inflation amid recent energy price moves and Consumer Price Index (CPI) forecast revisions.

The strategists look for confirmation that inflation expectations remain anchored, limited pass-through to core inflation, and any fresh comments on trade uncertainty after prior guidance on trade-related rate cuts was removed. They also expect the minutes to note that higher energy prices have not yet spilled into core inflation measures.