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### POV REPEAT: BOC HOLDING AT THE LOWER.....>

CANADA
CANADA: ### POV REPEAT: BOC HOLDING AT THE LOWER BOUND
The Bank of Canada is widely expected to keep its target rate on hold at 0.25%
Wednesday as BoC governor Stephen Poloz passes the baton to Tiff Macklem. There
will be no media lock-up or briefing; no Monetary Policy Report (next release
July 15).
- Base Case: Steady as she goes as many view the state of the Canadian economy
less downbeat after the country started staggered openings around mid-May as
virus cases leveled out.
- Dovish: Break (zero) only in case of emergency -- a move to zero bound an
option of last resort, analysts widely see any additional easing to come in the
form of QE, credit and/or liquidity enhancing measures.
- Hawkish: Raising rates still not an option for the foreseeable future. While
the rise in COVID-19 virus cases may have moderated, too many unknowns remain
with no vaccine available.

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