*** Markets are widely anticipating the......>

CANADA: *** Markets are widely anticipating the Bank of Canada to remain on hold

at the next policy announcement on March 6 as the economy moves through a slow

patch apace with slower global growth expectations. In fact, rate hike

expectations via Bloomberg show implied probabilities (OIS) NOT rising above 20%

through the July 10, 2019 policy meeting. Nomura economists cite the "failure of

recent data to meaningfully stabilize" for keeping the BoC "on hold through Q2

as the Bank seeks to gain confirmation of a rebound in activity. As a result, we

now expect the next rate increase from the BoC in Q3 2019, possibly in July, but

the timing remains uncertain. Operating under a more gradual schedule, we expect

another rate hike in Q1 2020."