CAD review

Quotes from RBC Capital Markets:

-CAD: The key takeaway from Poloz's speech was that another rate cut does not appear imminent. The main phrase was that "the downside risk insurance from the interest rate cut buys us some time to see how the economy actually responds."

-The implication is that they will wait to see the real impact on the economy before moving the policy rate again. So while the door for another cut is still open, the message is that they will 'wait and see' for now. OIS pricing for next week's BoC meeting moved to about 60% chance of a cut after the remarks, from 95% just prior.

-The other interesting issue that Poloz discussed was the Bank's inflation target. This is the third consecutive speech from BoC members that discussed the target as the Bank considers the 2016 renewal of the inflation-targeting agreement.

-While it is still 'being studied', it is notable that it has been mentioned so frequently. File this under "issues to watch in the coming quarters" because indications that the target could be raised or widened would be a very dovish signal.