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Muted Reaction To First BoC Summary Of Deliberations

CANADA

Markets broadly look through the BoC’s new Summary of Deliberations, with 2Y GoC yields dipping another 1bp for -3bp on the day (saw a larger move after the 2Y auction) and USDCAD now unchanged since the release at 1.343 (+0.2%).


Members framed the decision along two dimensions:
⦁ whether to leave the policy rate where it was or to increase it by 25 basis points
⦁ whether to maintain similar forward-looking language as in the previous policy statement or to adjust it to signal a pause

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