Analysts On BoC Surveys

BMO see less urgency of a July hike, less so Desjardins and RBC.

• BMO: “The factors the Bank highlighted in the June statement all improved: lower inflation expectations, ebbing excess demand, easing wage pressures, and lower expected price increases. There doesn't appear to be as much urgency to hike rates again in July. Similar to the June meeting, it's going to be a close call, with next week's jobs data likely tilting the balance.”
• Desjardins: “It's true that labour market pressures are easing at the margin, but progress is slow. […] Businesses said that the tight labour market was not directly contributing to the above-average price increases expected over the next year, but the reports of ongoing labour shortages still won't sit well with the BoC. “
• RBC: “Today's BOS survey flagged more softening in a slew of business sentiment indicators in Q2, including deterioration in the future sales outlook, further easing in capacity pressures, and slightly lower inflation expectations. Those however, probably aren’t enough to prevent another interest rate hike from the BoC in July. We expect 25bp in July to a terminal of 5% and to stay at that level through the remainder of this year.”