Canada: Data unlikely to change investor views or the trajectory of policy - BBH

Canada is an exception to the generalization that the data is unlikely to change investor views or the trajectory of policy, suggests the analysis team at BBH.  

Key Quotes

“The Bank of Canada has put the market on notice that it will review the level of accommodation that it has provided given the strength of the economy and fears of distortions caused by interest rates being too low for too long.  However, it may not be April's GDP (expected to slow from 0.5% in March to 0.3%, but the year-over-year pace may tick up to 3.3% from 3.2%) that sways investors or policymakers.  The central bank's Senior Loan Officer Survey may be key.  An upbeat report would likely boost the chances of a hike at the July 12 meeting, which interpolating from the OIS, is less than 40% discounted.”