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*RESEND* BoC EXPECTED TO CONTINUE WITH.......>

CANADA
CANADA: *RESEND* BoC EXPECTED TO CONTINUE WITH TIGHTENING CYCLE
- Amid a backdrop of strong economic data, the Bank of Canada is widely expected
to hike rates on Wednesday by 25bps to 1.5% (85% priced in).
- Markets will focus on the MPR with updated forecasts for GDP and inflation.
Governor Poloz's press conference also key on forward guidance.
- Caution expected to remain around trade related uncertainties with US steel &
aluminium tariffs, NAFTA talks and the threat of more levies in the auto sector.
- Hawkish risk: BoC to dismiss trade rhetoric, focus on recent strong data and
highlight future tightening.
- Neutral: The BoC will closely monitor trade developments and continue with its
data dependant approach.
- Dovish risk: Highlight greater risks from trade protectionism, the threat of
US-China tensions escalating could see a short sharp squeeze.

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