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MNI BOC Preview, Jan'23: Watching Guidance For An Expected Final Hike

CANADA
  • The BoC is expected to opt for a final 25bp hike to 4.5% on Wednesday. There is circa 20bps priced but the Bank had form last year at surprising markets, and five analysts expect no change.
  • A recent easing in financial conditions could see statement language err on the moderately hawkish side.
  • Core inflation and labour data have come in stronger than expected and near-term inflation expectations pushed higher but medium- and longer-term expectations have cooled somewhat and a majority of both firms and consumers expect a recession this year.
  • Find the full MNI BOC Preview including previews from fourteen sellside analysts here: https://marketnews.com/mni-boc-preview-jan-23-watching-guidance-for-an-expected-final-hike

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  • The BoC is expected to opt for a final 25bp hike to 4.5% on Wednesday. There is circa 20bps priced but the Bank had form last year at surprising markets, and five analysts expect no change.
  • A recent easing in financial conditions could see statement language err on the moderately hawkish side.
  • Core inflation and labour data have come in stronger than expected and near-term inflation expectations pushed higher but medium- and longer-term expectations have cooled somewhat and a majority of both firms and consumers expect a recession this year.
  • Find the full MNI BOC Preview including previews from fourteen sellside analysts here: https://marketnews.com/mni-boc-preview-jan-23-watching-guidance-for-an-expected-final-hike