*** Markets widely anticipate the Bank of....>

CANADA: *** Markets widely anticipate the Bank of Canada to keep the target rate

steady at 1.75% on Wednesday next policy annc, largely due to economy moving

through a slow patch apace with slower global growth expectations. In fact, rate

hike expectations via Bloomberg show implied probabilities (OIS) NOT rising

above 15% through the July 10, 2019 policy meeting. 

- TD Securities economists expect no change in rate while the "communique is

likely to have a dovish tilt to it, as the recent deterioration in economic data

ought to outweigh the impact of higher oil prices." TD expects the BoC "to leave

their forward looking language mostly unchanged, warning of higher policy rates

over time subject to the evolution of the data.

- 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."