TD Securities: BoC Balances Oil Risks and Weak Growth in June Deliberations

TD Securities strategists commented on the Bank of Canada's June Summary of Deliberations, which they say continues the central bank's recent balancing act. The BoC is weighing the spillover risks from higher oil prices against sluggish domestic growth.

The summary suggests policymakers remain cautious, with no clear tilt toward tightening or easing. The oil price upside poses inflation risks, while weak growth limits the scope for rate hikes.

TD Securities sees this as a neutral signal for the Canadian dollar, with the loonie likely to remain range-bound until clearer data emerges on either growth or inflation.