Canadian headline inflation for February came in at 2.0% y-o-y slightly lower than in January, notes Nomura Research.
In that regard, Nomura argues that while the relative stability in the core measures suggests that underlying inflation could be basing, this inflation report is unlikely to change the BoC’s assessment of inflationary pressures.
Nomura continues to believe the BoC will keep its policy rate unchanged this year and its focus on any possible impact on the economic outlook of external risk.
Nomura targets USD/CAD at 1.31 by the end of March and at 1.28 by the end of the year.
Source: Nomura Securities ResearchOriginal Article
