Canada will release the Q4 national balance sheet accounts at 8:30 a.m. ET Thursday, noted Bank of Montreal (BMO).

Growth in household disposable incomes continued to outpace debt in Canada in Q4. The bank expects the debt-to-income ratios to tick down, though the seasonal adjustment could limit the amount of the decline. The ratio has fallen for the last six quarters as growth in mortgage demand remains muted despite rate cuts, as affordability continues to be a challenge in many markets.

Bank of Canada Governor Tiff Macklem revealed in a Reuters interview that policymakers considered keeping rates unchanged at Wednesday's policy meeting but ultimately went ahead with the 25bps cut, given the heightened uncertainty on the trade front.

Looking ahead, future decisions will be largely guided by the direction of travel in the trade war, although BMO suspects the BoC was headed a bit lower in any event. The bank continues to expect three more 25 bp cuts at the next three meetings, taking the overnight rate down to 2%.