BULLET: CANADA BOC: BOC raises o/n rate target 25bp to as....>

CANADA BOC: BOC raises o/n rate target 25bp to 1.75%, as expected. 

Drops reference to 'gradual' approach. Says pol rate 'will need to rise 

to a neutral stance'. Tightening pace to depend on how econ adjusting to 

higher rates. Will also 'pay close attentn' to global trade pol 

developments. USMCA deal reduces trade pol uncertnty in North America. 

Raised biz investment,export projections on USMCA deal. But US-China 

trade conflict weighs on glob gwth,commod prices. Depsite fin mkt 

volatility, glob fin condtns accommodative. Global econ outlk remains 

'solid'. Temp factors pushing up infl shld fade in early 2019. Cdn econ 

continues to operate close to its potential and growth more balanced. 

Household cred growth moderating;hsg stabilizng. Wage growth remains 

moderate but to pick up in coming qrters. 2018 GDP 2.1% (rev from 2.0%); 

2019 2.1% (rev from 2.2%). 3Q GDP rev to 1.8% from 1.5%; to rebound to 

2.3% in 4Q. 2018 CPI at 2.4%, 2019 2.0%, 2020 at 2.0%.