The George Davis Report: May 2023 Edition

By George Davis, CMT
Published May 8, 2023 | 8 min watch

A monthly video series on the trajectory of the Canadian dollar

Don’t miss this month’s edition of the George Davis Report, where George discusses the recent BoC interest rate decision and whether CAD performance presents any concerns on the inflation front.


What you need to know:


Although the BoC kept interest rates on hold at 4.50% in April as expected, the balance of comments had a hawkish tilt.


They noted that moving inflation from 3% to their 2% target will be more challenging than prior declines, while pushing back against market pricing for rate cuts by year-end.


All told, it was a “higher for longer” message with a tightening bias that kept the door open for further rate hikes if required.


Some concerns have been raised recently about the potential for CAD weakness to create inflation and push the BoC toward additional hikes.


However, the BoC’s framework suggests that such fears are currently overblown.

For the trading range:






George Davis, CMT

George Davis, CMT
Chief Technical Strategist, Fixed Income, Currencies & Commodities, RBC Capital Markets

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