BOC shadow policy council has 4 of 10........>

CANADA: BOC shadow policy council has 4 of 10 members calling for a rate cut to

0.10% at June 3 meeting from current 0.25%. Other six called for rates to be

unchanged.

-CD Howe think tank's panel votes on what BOC should do, not what's expected to

happen.

-Rates shouldn't rise for at least a year, as far as the group looks ahead.

-"Despite some positive news in consumer spending in sectors that have reopened

following the COVID-19 economic shutdown, the output gap will create downward

pressure."

-Important BOC to be transparent about balance sheet expansion "for Bank

operational independence and credibility."

-Note: little precedent for BOC to move benchmark rate in anything other than

25bps increments. Past Governors said moving by less sends fuzzy message. Gov

Poloz and his replacement next month Macklem both signaled negative rates would

be destabilizing.