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Initial Reactions On Jobs Report Further Supporting 75bp Hike

CANADA
  • BMO: We fully expect at least a 75bp hike at next week’s meeting. Forget the messy headline jobs number, the main takeaway here is that Canada has the tightest job market in generations, and now wages are starting to move with purpose.
  • CIBC: We’re sticking to our call for a 75bp hike next week with the overnight rate peaking at 3% this year. The jobs data weren’t really bad enough to generate a sigh of relief for those concerned about an inflationary overheating.
  • RBC: Stick to a 75bp hike next week with the overnight rate peaking at 3.25% at year-end. The jump in wages in July will only add to concerns at the Bank that high inflation rates won't ease significantly enough without additional aggressive interest rate hikes.

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