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Canadian Inflation Tentatively Favours a Skip
The BoC’s July meeting could well go right down to the wire again. Canadian inflationary pressures sharply ebbed at the margin and this gives the Bank of Canada a little more breathing room to potentially spread out possible further tightening. I would still hike in July if it were me and given continued upside risk to trend inflation, but the BoC’s emphasis upon intermeeting data dependence and lessons on the fine tuning stages in the past make me doubtful at this point that Governing Council will go back-to-back. Significant revisions to core price pressures at the margin lend caution to being overly reliant ... (full story)