"Inflation has firmed significantly and, despite the possibility of a brief period of soft growth, the overall economic recovery remains on track," said Nick Bennenbroek, international economist at Wells Fargo. An expected 0.4% economic contraction in July despite the economy reopening from pandemic lockdowns gives support for a cautious stance, and stands in contrast to a still very robust economic expansion south of the border. "Against this backdrop the Bank of Canada is on course to shift to less accommodative monetary policy.