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MNI BoC Review, Dec'23: Waiting For January, Unless Gravelle Surprises

EXECUTIVE SUMMARY

  • The BoC left its overnight rate unchanged at 5% as heavily expected.
  • More notably it didn’t drop its explicit hiking bias but that has done little for already large cut expectations for 2024 with the start date still seen with the April meeting.
  • There was acknowledge of the softening in economic and labour data although the latest drop in the shorter-term trend core inflation was ignored.
  • Markets mostly brushed the short statement off but Dep Gov Gravelle could still have an impact today (Thu, remarks 1235ET). The next major data are Canadian CPI on Dec 19, one of two CPI releases before the January BoC which include fresh forecasts in the Monetary Policy Report.

PLEASE FIND THE FULL REPORT HERE:

BOCReviewDec2023.pdf

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