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JPM See No Further Hikes Having Called Today’s +25bps

CANADA
  • The BoC hiked 25bps to 4.75% as we expected.
  • With excess demand showing signs of persisting, Bank concerns have increased that CPI inflation could get stuck materially above the 2% target.
  • Since we expect the labor market to cool and inflation to continue to move lower, we expect the Bank will hold at 4.75% for the remainder of 2023.

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