Inflation data reinforces view that BoC is likely to keep rates on hold for rest of 2019 - ING

"Core inflation, as measured by the average of the Bank of Canada's three key measures, is the highest it's been since 2012," note ING analysts assessing the latest inflation figures from Canada. "Combined with better domestic growth prospects for later in the year, this suggests the central bank is unlikely to head for policy easing for now, although a lot depends on how trade tensions evolve over coming months."

"Despite the rapid switch in the monetary policy stance at the Fed and ECB, the Bank of Canada's more upbeat tone at its May meeting suggests they are unlikely to follow suit imminently."

"Policymakers signalled they have growing confidence that the recent economic weakness is merely a 'soft-patch'. This latest inflation data reinforces our view that the BoC is likely to keep rates on hold for the rest of 2019, although a lot will depend on how the external environment evolves."