Rabobank's analysts are expecting the Bank of Canada (BoC) to keep its policy interest rate unchanged at 1.75% on May 29.

• This is unanimously expected by the 21 analysts surveyed by Bloomberg (including ourselves) and CAD OIS implies almost no chance of a move in either direction at the May meeting.
• Although a more cautious tone has been adopted by the Bank, the door was left open for rate hikes. Rather than being dovish, we argue that the Bank has adopted a holding stance.
• We maintain the view that the BoC will not be able to raise rates again this cycle and instead we see the Bank cutting rates in 2020 Q2.