Forex Flash: BoC to keep rates but sound dovish – TD Securities

It's widely expected that the BoC keeps the overnight rate unchanged at 1.00% before heading to the press conference room: “We expect the Bank will express disappointment that both economic growth and core inflation through the end of 2012 fell short of the forecasts presented in the January Monetary Policy Report”, wrote TD Securities analysts, expecting the Bank to also reiterate its view that economic activity should recover over the balance of the year and into 2014. TD Securities analysts see scope for softer language, “but the Bank will likely stop short of reverting to a neutral forward-looking statement”.