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JPM Ups Call To 75bp Hike Tomorrow

CANADA
  • JPM believe “heightened concerns around unanchored inflation expectations and a wage price spiral” will push the BoC to hiking 75bps tomorrow, having until last week thought a 50bp increase appropriate.
  • Whilst still a close call in their view, they now see a downshift to 50bp from 100bp in July as a dovish signal and "the wrong message about the Bank’s resolve".
  • That, along with one other analyst doing the same today, leaves just 3 of 31 calling for a 50bp hike tomorrow, with all others looking for 75bp.

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