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Retail gross sales report will do little to vary narrative round BoC hikes – TD Securities

“Retail gross sales fell by 0.1% in December to outperform expectations for a extra vital decline. Gasoline costs had a disproportionate impression which left actual retail gross sales up 0.2%,” TD Securities strategists Andrew Kelvin and Robert Each mentioned assessing right this moment’s retail gross sales report from Canada.

Key quotes

“This report will do little to vary the narrative round BoC hikes – we’re nonetheless monitoring This autumn progress at 0.9% (BoC: 1.3%) and the Financial institution will nonetheless want affirmation of a rebound in enterprise funding earlier than transferring off the sidelines.”

“Charges: Markets largely seemed previous the higher than anticipated retail gross sales gigures, and the pervading sense of pessimism across the Canadian financial system is simply too entrenched to be revised away following one or two modest upside surprises.”