Ahead of tomorrow's BoC rate decision........>

CANADA: Ahead of tomorrow's BoC rate decision (1400GMT), analysts at BMO note

the economy likely struggled for a third consecutive quarter with GDP growth

forecasted at 1.5% in Q1. While we (and the BoC) are looking for growth to

rebound in Q2, there remain a number of uncertainties clouding the outlook.

- CIBC say, in Canada, the central bankers will likely have had a preview peek

at the Q1 GDP data when they make their rate announcement on Wednesday. We now

look for an even 2% real GDP pace, which nicely tops the last BoC projection.

But there's no reason for Governor Poloz to rush to judgement.

- RBC see the BoC's target rate holding steady at 1.25% after the May. Economic

growth is looking slightly firmer in Q1 than expected in the April MPR (1.8% vs

1.3%, see details below), though it is still just equal to the BoC's updated

potential growth rate.

- TD look for the Bank to leave policy unchanged and expect few surprises, with

only the statement to guide markets and no significant developments since Apr.

We look for a mixed set of hawkish and dovish tweaks, but on balance expect mkts

to take a dovish cue from the continued emphasis on "gradual" and "cautious."