Signs of resilient growth in the GDP report should be CAD-supportive, given the Bank’s concern about the economy running relatively hot. But the BOS will also likely have some sway in policymakers’ thinking. 

Recent reports have pointed to slowing growth momentum but extremely resilient inflation expectations which reflect very little faith in the business community that price stability will be restored anytime soon. Little or limited progress on inflation expectations in the Q2 survey will also support the outlook for more tightening.