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BofA Look For No Change But Risk Skewed To Another Hike

CANADA
  • In the minority of analysts this month, BofA expect the BoC to remain on hold with the overnight rate target at 4.75% in the July 12 meeting, but it is a close call.
  • Inflation has fallen significantly in recent months and surveys point to lower inflation expectations. But the labor market remains tight (although it is softening), and the economy appears to be rebounding.
  • The risk is skewed to the upside for another hike as economic activity still has momentum.

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