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BULLET: CANADA BOC: Hikes o/n rate target by 25bp to 1.0% vs.>

CANADA BOC: Hikes o/n rate target by 25bp to 1.0% vs consensus at 
0.75%. Cites stronger-than-expected gwth. Repeats future decisions 
depend on data but adds will also depend on fin mkt developments. 
Removal of some of 'considerable' stimulus was 'warranted'. Future 
decisions 'not predetermined'. Will particularly focus on how econ 
potentl,labr mkts evolve. To pay close attentn to econ sensitivity to 
higher rates. CAD appreciation partly reflects Canada econ strength and 
partly USD weakening amid signif geopolitical risks,uncertainty re intl 
trade, fiscl pol. 'Some excess capacity' remains in Cdn labor mkt. 
Still sees econ slowing in 2H17 but GDP lvl now above expectd. 
Infl below 2% target but has evolved 'largely as expected'. Wage, price 
pressures more subdued than historically.

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