18 April 2018 at 14:14 GMT
Bank of Canada decision: The BoC kept the interest rate unchanged as a vast majority expected. While the statement on the outlook is mostly upbeat, it was clear, the rather aggressive rally in CAD and Canadian yields coming into today's meeting suggested that the market was expecting positive language. The most positive portion of the statement is the prediction that Canada's economy will grow slightly beyond potential for the next three years and the writing off of recent slower growth as due to temporary factors like transportation bottlenecks and new mortgage guidelines.
On the more negative/dovish side, the statement bemoans export growth potential as limited by capacity constraints and competitiveness and ongoing uncertainty on trade policies (Trump!). As well, the positioning on inflation is that some amount of accommodation is needed despite eventual further rate hikes to keep inflation at a sufficiently high level.
Next big CAD event risk: Friday Canada Mar. CPI data.