BANK OF CANADA TO TURN DOVISH? Today BOC is widely expected to leave its rate unchanged at 1%. However, we expect BOC to lower their growth forecast in the quarterly Monetary Policy Report that is published at the same time. This may tilt the message in the rate statement in a dovish direction. However, as BOC also pays a lot of attention to imbalances in the household sector, we believe that household credit growth need to moderate further for BOC to truly communicate a dovish message.
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