January 25, 2023 19:40 GMT
BMO: Door For Further Tightening Is Quite High
- BMO note that while policymakers haven't shut the door on more hikes, the bar for further tightening is quite high.
- It looks like a March move is off the table barring some wild data. The April policy decision will be more definitive as we'll have a few employment and CPI reports by then.
- Forecasts: No big surprises with the 2023 growth forecast raised a tick to 1% and 2024 trimmed 2 ticks to 1.8%, and more optimistic than BMO's call, whilst BMO's inflation forecast is a bit more cautious, but not too far above the BoC.
- BMO's base case remains that the BoC is on hold through the rest of 2023.