BoC on Trump - BTMU

Analysts at Bank of Tokyo Mitsubishi noted how Trump impacted the BoC's cuationary outlook.

Key Quotes:

"The uncertainty surrounding the potential impact of President Trump’s policies was the main reason cited by the BoC for maintaining their cautious outlook, which could still justify lowering rates further.

So far the BoC has only incorporated some potential positive impact from President Trump’s tax cuts.

They have tentatively estimated that it could boost US growth by around 0.5 percentage point through to the end of 2018.

The supportive impact for Canada’s economy from stronger US growth will be tempered by a deterioration in Canadian competitiveness from the US corporate tax cuts. Canada’s relative attractiveness to foreign investment will diminish."