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Some Trimming Of Rate Hike Expectations

CANADA
  • The BOC has managed to move ahead with rate liftoff and lay out QT plans without materially disrupting the front-end of the rate path, compared to right before the meeting and also to after the hawkish hold in January.
  • There has been some larger compression further out though, with BAX reds and greens rising notably today, but that’s as much as US/geopol move as it is local.
  • Earlier, labor productivity fell for another quarter and by more than expected, hindering productive capacity and supporting the rate path priced.
  • Week ahead: Canadian employment on Fri dominates the local docket but US CPI on Thu is first.

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