Analysts at TD Securities, note that the Bank of Canada left rates unchanged at 1.75% in May, as universally expected, while balancing a more constructive view on the domestic economy against a more uncertain global outlook, caused by the escalation in US/China trade tensions.

“There was no change to the Bank's forward guidance, which notes that the current accommodative policy remains appropriate pending the evolution of household spending, energy sector dynamics, and global trade tensions.”