CIBC after Poloz's speech
"In a speech to a St John's audience, the BoC head highlighted that he's aiming to proceed "cautiously" with more hikes, despite what's been more aggressive pricing from the market and what was perceived as a hawkish September statement. That's because household debt levels "amplify" the impact of the tightening he's already introduced, while the strengthening C$ "complicates" the inflation outlook.
...All told, the majority of the speech confirms our assumptions that tightening from the Bank of Canada will be a gradual affair from here, with our estimate being that the next move will have a 2018 time stamp.
Bearish for the C$ which we see weakening by a few more cents by the end of this year, and bullish for the front end of the Canadian curve," CIBC argues.
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