TORONTO, Dec 10 (Reuters) - The Bank of Canada held its key policy rate steady at 2.25% on Wednesday as widely expected, and Governor Tiff Macklem said the economy was proving resilient overall to the effect of U.S. trade measures.
MARKET REACTION: [CAD/]
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COMMENTS
ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATES STRATEGY AT TD SECURITIES
"There was maybe a little bit of pushback around some of the excitement that followed the recent strong employment numbers... The Bank noting that their outlook
hasn't really changed despite a few good data prints in Canada."
"We do acknowledge maybe a little bit more progress is being made, a little bit more resilience in the economy. But at the end of the day, it is a fairly cautious tone and it leads me to be very comfortable with the idea that the bank will be on hold for quite some time."
DARCY BRIGGS, PORTFOLIO MANAGER, FRANKLIN TEMPLETON CANADA
"Overall, I think the bank is watching the incoming data to see which path it may go. There are signs that Canada is adjusting to the trade shock but there's some lingering softness as well. So I think they'll keep their cards close to their chest and just watch the incoming data to see if additional policy action is needed."
"The market is trying to figure out what the odds are for the next Bank of Canada action. Maybe a little premature on (pricing in) a hike but that's what markets do."
(Reporting by Fergal Smith and Nivedita Balu)
