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/BOC policy previews: - TD Securities:.......>

CANADA
CANADA: /BOC policy previews:
- TD Securities: 25Bp hike to 1.75%
"Recent economic data has been upbeat on balance and downside risks from US
trade policy have diminished since July. This should allow the statement to
sound upbeat." TD sees "no material change to forward looking commentary.
Mark-to-market upgrade on 2018 GDP, but don't get the full 0.7pp back from NAFTA
uncertainty. Reference to possible upward revisions to potential. Repeats higher
interest rates will be warranted."
- Bank of America: 25Bp hike to 1.75%
- BoC statement "Leaves the door open to further hikes. Economic activity is
stronger than anticipated by BoC. We continue to see the overnight rate at least
at 2.75% by end-2019. We expect 10y CAD at 2.65% by year-end and CAD at 1.33 in
4Q with modest upside risks." BoA expects the BoC "to upgrade its GDP growth
forecasts for 2018 and 2019 on October's monetary policy report. Stronger
activity will put more pressure on prices, leading the BoC to pick up the pace
of hikes."

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