BoC leaves rates unchanged, inflation lagging on high CAD

The BOC kept rates unchanged at 1.0% as widely expected. 

Key headlines

BOC will be 'cautious' with future rate increases 

BOC lifts 2017, 2018 gdp forecasts to 3.1%, 2.1% from 2.8%, 2% 

BOClabor market slack provides room for growth w/o inflation 

Strong canadian dollar weighing on inflation and exports: boc 

Nafta talks create 'substantial uncertainty' for boc outlook 

BOC sees economy running 'close' to potential over next 2 years

Sees inflation rising to 2% by 2H of 2018, later than expected due to higher C$

Inflation has picked up in recent months

There could be room for more economic growth than projected without inflation rising materially above target

Lowers Q3 growth forecast to 1.8% from 2%.

Sees Q4 at 2.5%. 

Sees slower  growth due to higher C$