The BoC meeting tonight is the main Canadian focus this week, although developments since the April MPR point to little prospect of any change in their neutral message.Last week’s activity and inflation data fit with the Bank’s call for Q1, and we will not get any strong indications on the more important ‘rebound’ in Q2 until next month.The most interesting parts of the statement will revolve around whether the Bank has changed their perception of the impact of recent mixed data in the US, the stronger bounce in oil prices, or the recent bounce in CAD. Last week’s comments from Governor Poloz suggest their views have not changed much, leaving expectations firmly neutral for this week’s policy statement.
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