- Recovery to be more gradual than forecast in April
- Inflation in-line with projections
- Lowers GDP forecast to 3.5% from 3.7% this year, 2.9% from 3.1% next year
- Housing activity declined markedly from high level, employment growth has resumed
- Europe slowing global growth, US demand picking up but remains uneven
- Sees slower global growth than previous due to budget cuts
The CAD is weaker as the market prices out a series of rate hikes ahead. We trade now at 1.0555 from 1.0520 before the data.
The Bank’s full statement can be read here.
