Tiff Macklem is looking like a deer caught in the headlights

A return to Fed easing by the end of the summer will only help make Tiff Macklem and the Bank of Canada’s work easier, and there is no doubt in our mind that the next moves in rates will be lower, writes David Rosenberg. Photo by TONY CALDWELL/Postmedia files

The Bank of Canada chose not to cut rates at Wednesday’s policy meeting — a no-move at 2.75 per cent was fully priced in — but this is a “dovish hold” when you sift through the press statement.

Policymakers looked through the recent uptick in gross domestic product (GDP) growth to “the pull-forward of exports to the United States and inventory accumulation boosted activity, with final domestic demand roughly flat.”

In terms of looking ahead instead of back, they added that “ the economy is expected to be considerably weak