Scotia Bank's Derek Holt "changed our........>

CANADA: Scotia Bank's Derek Holt "changed our house call" and now expects the

Bank of Canada to raise rates "by 25bps on Jan. 17th. Another ridiculously

strong (Canadian) employment report that is marked by over 150,000 new jobs in

two months gives the BoC full reason to look through a transitory soft patch in

the economy during Q4 in GDP tracking terms, and to look more favorably upon

income dynamics driving the consumer sector into 2018."

- He adds more "acceleration of wage gains adds to price and wage pressures in

the economy. The 50-50 mkt pricing gives" BOC Gov. "Poloz the same cover to say

half of you got it right and half wrong. His December speech gives him cover to

say I told you so. January is a full MPR meeting so the BoC can more fully

explain its views in less than two weeks. The only knocks are CAD strength, 

which is a chicken and egg factor and part of the appreciation is for sound

reasons, and the output gap framework with soft Q4 growth, albeit likely

transitory and with some distortions."