BOC rates seen being on hold into 2023.......>

CANADA: BOC rates seen being on hold into 2023 after Gov Macklem says it will

remain 0.25% until inflation is sustainably around 2% target.

-Macklem also said that QE may be tapered off before rates rise, in line with

earlier plan to buy at least CAD5b/wk of federal bonds until recovery is well

underway.

-"We will be looking for signs that the recovery is becoming more

self-sustaining," Macklem said at press conference. "Logically yes, the recovery

being well under way comes before capacity has been fully absorbed, but those of

those are some ways off."

-"We continue to think asset purchases will continue at least through the first

quarter of 2021, and likely well into next year," RBC senior economist Josh Nye

says in note. No rate rise until 2023 or later.

-Capital Economics: "Bank signals it will not raise rates until at least 2023."

-"The timing of the first BoC hike could be similar to that for the Fed, in

early 2023," CIBC chief economist Avery Shenfeld said. "the phrase "well

underway" also suggests that QE will end before the policy rate is hiked."