Tiff Macklem is looking like a deer caught in the headlights

The Bank of Canada chose not to cut rates at Wednesday’s policy meeting — a no-move at 2.75 per cent was fully priced in — but this is a “dovish hold” when you sift through the press statement.

Policymakers looked through the recent uptick in gross domestic product (GDP) growth to “the pull-forward of exports to the United States and inventory accumulation boosted activity, with final domestic demand roughly flat.”

In terms of looking ahead instead of back, they added that “ the economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued.”

At the margin, there has been little change at the front end of the yield curve or the Canadian dollar in response to the sidelined cen